Madison buys stake in €100m Warsaw office complex

Chmielna 89 is fully let to Poland’s largest bank and one of its oldest financial institutions, PKO BP, on a 10-year lease.
 
Located in the business centre of Warsaw between Chmielna Street and Aleje Jerozolimskie, the city’s main east-west artery, the 14-storey building has a highly characteristic design resembling a giant crystal and creating an easily recognizable new landmark on the Warsaw skyline.
 
The building offers over 25,000 m2 of grade A new office space and is fitted with a number of features to promote occupier wellness including 2.8m windows to allow for maximum daylight, and a series of distinctive green terraces providing 370 m2 of outside space.
 
The building is further served by 122 parking spaces across two underground levels.
 
Matthias Cordier, managing director at Madison International Realty, commented: ‘Through this transaction we have secured a stake in a brand new landmark office in Warsaw CBD which is fully let on a long lease to Poland’s largest and best known bank, PKO PB, at an attractive yield.  We are strong believers in both the strength of the prime Warsaw office market and, more generally, the important role we believe the office will continue to play in the daily working lives of people post Covid-19.’
 
The acquisition further extends Madison’s Polish portfolio, following the purchases of a c66% stake in Capital Park last year and the investment into the ELI logistics platform.  Cordier added: ‘The transaction is typical of our investment approach whereby we find partners wishing to partially exit their investments in order to recycle capital into other projects and we now look forward to working with the Cavatina team.'
 
Cavatina was advised in the transaction by CBRE and law firm Dentons. Madison was advised by Greenberg Traurig, KPMG for tax and financial advisory and BNP Paribas Real Estate for technical advisory.