IVG Institutional Funds acquires office tower in Warsaw

IVG Institutional Funds has purchased the Victoria Building in Warsaw for EUR 29 mln from a European real estate investment fund of Deka Immobilien Investment. IVG said that the transaction is evidence of Poland's, and particularly Warsaw's, 'thriving' economy. As one of the world's few countries to remain buoyant following the 2008/2009 recession, Poland is anticipating average annual growth of 4%.

The Victoria Building is located in the Wola district at the outskirts of the Warsaw business centre, one of the prime office locations in the city and directly accessible for pedestrians coming from public transport. A metro line is in the process of being built nearby.

The Victoria Building, constructed in 2003, consists of a main building with 13 floors and a three-storey annex building, offering a panoramic view over the city of Warsaw from the upper floors. The building features approx. 12,500 m² of space plus 83 indoor car park and 83 outdoor parking spaces.

The transaction is based on Poland’s typical leasehold structure with an 80-year term. The Victoria Building's sole lessee is Kredyt Bank, which was one of the first private banks founded in Poland in 1990. It is now one of the country's 10 largest banks, is listed on the stock exchange and is 80% owned by Belgian bank and insurance group KBC Group. Including an option to renew, the lease agreement will run until 2019 and is tied to a consumer price index.