Echo Investment sells Q22 office building to Invesco Real Estate
The sale of Q22 skyscraper located on al. Jana Pawła II in Warsaw has been completed and Invesco Real Estate has become the new owner of the building. Echo Investment expects that the value of the transaction based on fully let NOI and an agreed yield, after all adjustments and additional payments, shall amount to EUR 273 million.
The amount of EUR 230 million has been already paid. The remaining part of the price will be transferred during 2017, when all tenants move into the building.
“Echo is proud of having completed and sold Q22 office building to such a reputable investor as Invesco Real Estate. In Invesco’s real estate portfolio Q22 will continue being the most prestigious building in Warsaw for many years ahead. The transaction is clearly in line with Echo’s strategy of being a pure developer, focusing on development activity and selling its buildings as soon as they are leased up” says Nicklas Lindberg, CEO of Echo Investment.
“We are delighted to become the owner of Q22, Warsaw’s newest high-rise property in its CBD offering both office and retail facilities to high modern specifications. Not only have we diversified our core portfolio with this acquisition, the quality of the asset adds value to the portfolio by increasing the income return for the strategy and ultimately the performance for our investors” comments Paddy Bingham, Managing Director, Fund Management – Europe, Invesco Real Estate.
The Q22 story started only five years ago, when Echo Investment bought an old hotel building at the junction of al. Jana Pawła and Grzybowska Street in the center of Warsaw. Since then, the company has managed to demolish the previous building, design the modern skyscraper with Kuryłowicz&Associates studio, complete the construction works and lease 82 pct. of its 53,000 sqm. GLA space. In few weeks, new leases for up to 90 pct. of space are expected.
Q22 construction was completed in July 2016. The list of its tenants includes such names as Deloitte, Allegro, Linklaters, William Demant, Vestor DM, Citi Handlowy, Savills and White and Case, as well as Griffin Real Estate, Echo Polska Properties and Echo Investment itself.
Q22 is the recent winner of prestigious Eurobuild Award for best office building of 2016, as well as the Prime Property Prize 2016 in architecture. It has also won in the office investment of the year and CEE Investment & Green Building EuropaProperty Award (Best Office Project) categories. This is a 21st century office building that applies the newest technologies as well as cultural trends enabling free interior planning. It also hosts various service facilities, including 5-story parking lot (also for cyclists), restaurants, fitness club and conference rooms.
About Invesco Real Estate (IRE) is a global real estate firm, which has been providing real estate investment and property asset management services since 1983, first in the US and then expanding into Europe and Asia.
Globally, IRE has US$71bn of assets under management and over 443 staff in 21 offices around the world. In Europe, they have eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw, and around 140 employees. IRE manages 128 assets across 12 European countries and has US$8.2bn of assets under management.
Source: Echo Investment