Austrian listed real estate investor-developer Immofinanz has carried out its largest acquisition since the onset of the credit crisis in 2008 with the purchase of the Park Postepu prime office complex in Warsaw. The scheme was bought from local developer Echo Investment for EUR 102 mln.
Austrian listed real estate investor-developer Immofinanz has carried out its largest acquisition since the onset of the credit crisis in 2008 with the purchase of the Park Postepu prime office complex in Warsaw. The scheme was bought from local developer Echo Investment for EUR 102 mln.
Immofinanz said that the transaction was in line with its strategy to focus on prime offices and expand its portfolio 'in the most dynamic Central and Eastern European markets'.
Located in the Mokotow district of Warsaw, Park Postepu was built between 2009 and 2010. It comprises four multi-purpose buildings with 23,000 m2 of space and a car park. It is fully let to national and international tenants.
'Echo Investment is selling the facility because it needs to maintain its financial liquidity and due to its fears concerning difficulties in obtaining funds for its next projects. The funds acquired from the sale will be allocated to securing the sources of financing of the projects prepared for the development,' said Piotr Gromniak, president of the management board of Echo Investment.
'The interest of national and international investors in this top property was enormous. In the end, we were able to convince the sellers with our many years of experience and our know-how in efficiently settling transactions of this size,' commented Immofinanz board member Manfred Wiltschnigg.
Immofinanz secured financing from Erste Group Bank. The Austrian company said the loan was 'an important signal that debt financing is still available for top properties at acceptable conditions, even in times of high volatility on financial markets'.
Immofinanz is striving to increase the share of prime office assets in its portfolio, as a way to stabilise its portfolio value. In addition to the Park Postepu deal, other operations part of this plan include the development of the Nimbus project in Warsaw. Currently, the share of the so-called 'International High-Class Offices' within its portfolio amounts to 12.6% of the total.
A profile of Immofinanz CEO Eduard Zehetner appears in the October edition of PropertyEU Magazine. Click on the link below to subscribe
