HB Reavis to sell two office buildings in in the city center of Warsaw
International real estate developer HB Reavis has signed preliminary sale agreement to sell two of its buildings, situated in the City Center of Warsaw, to Savills Investment Management on behalf of a Global Pension Fund client. In one of the largest transactions of the year in Poland and also in Central and Eastern Europe amounting to €186 million, Savills Investment Management has acquired buildings A and B of the Gdanski Business Center in Warsaw, totalling 48,000 sq m.
Marian Herman, CFO of HB Reavis said: “Gdanski Business Center offers a truly unique investment opportunity for the pension fund. As a new investor in the Polish market, to obtain a fully occupied building and high quality asset in one of Warsaw’s most sought-after and well-connected office locations in the city centre is a great asset. The deal comes only one month after we agreed to sell our 33 Central development in London and only few days after we have completed the divestment of Konstruktorska Business Center, another of our Warsaw assets. Our strong transaction track record this year across number of our markets, demonstrates not only the quality and attractiveness of our assets, but also persisting confidence of institutional investors in the European markets despite the recent uncertainties across Europe following the UK’s vote to leave the EU. Poland in particular remains one of to the most favoured investment locations.”
Gdanski Business Center, comprising of four completed buildings (A, B, C and D), provides the Polish capital with nearly 100,000 sq m of A-class office space and is already home to a number of prestigious companies and institutions including KPMG, the Agricultural Property Agency, SNC Lavalin, Provident, WebInterpret, KMD, Agito, Bank BGZ BNP Paribas SA and insurance group Aviva.
The scheme is considered the best connected office complex in Warsaw, with unrivalled access to public transportation due to its close proximity to the Dworzec Gdanski metro station, numerous bus and tram stops and Warszawa Gdanska railway station, and with the city’s rental bike scheme, Veturilo, located nearby. Apart from the excellent accessibility, workers benefit also from the first class amenities available in the close vicinity of the office complex (sport facilities, medical centre or Arkadia shopping centre).
Stanislav Frnka, CEO of HB Reavis Poland added: “We are pleased that the purchaser recognized the Gdanski Business Center’s excellent line-up of tenants, the unmatched connectivity, mixed-use amenities and quality of building design. The building fits perfectly into Warsaw’s urban fabric and has proved a success with both office workers and local visitors.”
Jon Crossfield, Head of Strategic Partnerships at Savills IM comments: “We are delighted to have successfully concluded the purchase of these assets on behalf of our client. The quality of the buildings, transport links and the attractive mixed environment that HB Reavis have created at GBC is unique, and as a result continues to attract a wide range of tenants from government, professional through to the technology sectors. The investment market continues to mature and strengthen, and we are confident that it will be the best located, highest quality schemes such as GBC that will prosper and be well placed to take advantage of Warsaw’s and Poland’s continued strong economic growth.”
Gdanski Business Center I has received several awards including ‘Office Development of the Year’ in the CIJ Awards competition in 2015, as well as the Prime Property Prize in the ‘Investment of the Year – Office Space Market’ category in 2014.
JLL, Cushman & Wakefield and Greenberg Traurig advised HB Reavis on the deal. Savills, Clifford Chance and K+S Ingenieure advised Savills Investment Management.
Source: HB Reavis