German asset manager Warburg-HIH Invest has acquired a new-build property in the Polish city of Wroclawfrom developer Echo Investment for a price understood to be in the €60-€70 mln range.
The Sagittarius Business House office scheme, which will have a lettable area of around 25,000 m2, has been purchased by Warburg-HIH for a fund backed by an institutional investor.
'We are taking advantage of a great opportunity with this additional acquisition in Wroclaw because the Polish real estate market offers a yield premium to west-European investors, and because the city represents an attractive investment destination due to its positive macro-economic performance,' said Andreas Schultz, head of the transaction management international units at Warburg-HIH.
Slated for completion by the first quarter of 2018, the main tenants are Ernst & Young and Bank of New York Mellon, taking about 80% of the total space. In addition, the six-storey building encompasses around 1,300 square metres of retail and restaurant space on the ground floor, as well as a preschool. It will be certified BREEAM Excellent.
The developer is responsible for completion of the construction works and has guaranteed full occupancy by the time ownership of the property is transferred.
'I am convinced the building will be an excellent asset in the portfolio of the individual fund,' concluded Echo Investment's CEO Nicklas Lindberg.
