German investor KGAL Investment Management has acquired the Fuzja Office scheme in Lódz, Poland, on behalf of a pan-European special fund. The asset was acquired from listed POlish developer Echo Investment for an undisclosed amount.
The BREEAM excellent complex provides 22,000 m2 of net rentable space across three buildings and is due for completion in the second quarter of 2022.
Commenting on the rationale for the investment decision, André Zücker, managing director and head of Real Estate of KGAL Investment Management, said, 'All the necessary ingredients for a continued evolution of the city with regard to becoming a modern and prosperous business location on the outskirts of Warsaw are evident in Lódz. If this dynamic unfolds as we anticipate, rising rents and yield compression can be expected. We therefore envisage good prospects for a significant increase in value in the next few years.'
The Fuzja Office I office complex is part of a large-scale redesign on a former industrial site. The district development includes a total of 23 buildings consisting of six office properties, retail space and over 700 apartments.
Savills (commercial advisory), BNP Paribas Real Estate (technical appraisal), DLA Piper (legal advice) and Nomos (tax advice) acted in an advisory capacity on the transaction.
