Europi Property Group, a value-add platform launched last year by former Blackstone executive Jonathan Willén and Brunswick Real Estate Ventures, has acquired a 12.3% stake in Capital Park, a major owner, operator and developer of high-quality office and mixed-use assets in Warsaw.
Although financial details were not disclosed, the deal is said to have closed at an attractive discount to NAV.
Capital Park, which is 66% owned by US group Madison International’s Liquidity Fund VI, was founded in 2003 and has been listed on the Warsaw Stock Exchange since 2013. The company is currently re-developing the two-hectare former Norblin, Buch Brothers and T. Werner factory in Warsaw's Wola district. The mixed-use development involves around 40,000 m2 of office space and more than 26,000 m2 available for leisure, services, retail and cultural facilities. The project is scheduled for completion in Q2 2021.
Madison International bought a majority stake in the business last year from Patron Capital, which retains a minority stake alongside management and other retail investors.
‘EPG has been tracking the company since late 2019, but the opportunity to invest arose as a result of the market distress in March,’ Europi said.
The investment in Capital Park provides a debut entrance into Poland, one of its high-conviction target markets, it added.
Jonathan Willén, CEO of Europi Property Group, commented: ‘We’re very excited about our investment in Capital Park, which gives us access to one of the leading real estate platforms in Poland and their portfolio including the unique Norblin factory redevelopment. Norblin is one of the most remarkable placemaking projects in Warsaw and will create a new trophy asset in a prime location.’
He added: ‘As we continue to assess investment opportunities in Poland, we’re very pleased to have partnered with one of the country’s most experienced local real estate players. We look forward to selectively expanding our portfolio and working with Capital Park (and Madison) on its current portfolio as well as sourcing further opportunities. EPG is extremely well positioned to capitalize on opportunities coming out of the current crisis, and we are constantly assessing dislocations and distressed opportunities in our target markets. While we think there is some further pain to come, interesting opportunities are slowly beginning to emerge, and we’re focused on finding the best risk-adjusted investments for our shareholders.’
