Aareal Bank AG has financed the purchase of one of the largest office properties in Central and Eastern Europe. The office complex, valued at an aggregate €260 million, was bought by London & Regional Properties of the UK, one of the largest private property companies in Europe.
The property is the well-known 'Rondo 1' complex in Warsaw. The 40-storey, 192-m high office tower located in Warsaw's central business district is a first-class property which has set new standards for the region. The building has a total floor space of approx. 56.000 m². Tenants include well-known names such as Ernst & Young, Calyon Bank Polska and Baker McKenzie.
"This was the largest single financing project we have executed in Central and Eastern Europe to date", said Norbert Kickum, Aareal Banks Chief Marketing Officer, underlining the banks commitment to continuously expand its presence in these markets: "This landmark deal is another clear indication of Aareal Banks outstanding performance and financing skills."
Karl Wilson, General Manager for Poland, the Czech Republic and Slovakia, added: "As one of Warsaws landmark properties, Rondo 1 is well-known in Poland and beyond. For us, this financing was a good opportunity to demonstrate our skills as an international property specialist with local market expertise and extensive structuring know-how."
Aareal Bank has been active in Central and Eastern Europe for several years now, having financed properties in Poland, the Czech Republic, Slovakia, and in the Moscow region of Russia. In addition to the Arkadia shopping centre in Warsaw Polands largest Aareal Bank has provided finance for a range of large retail centres, including Galeria Kazimierz in Kraków, Galeria Mokotow in Warsaw, and the Silesia City Center in Katowice.
Kickum also pointed to hotel financings as another focus of the banks activities in this region: Aareal Bank has applied its extensive skills to a variety of complex transactions in this market segment, including the Intercontinental Hotel in Prague, and the Carlton office and hotel complex in Bratislava.
In view of the growing significance of logistics infrastructure throughout CEE countries, the bank will also step up its activities in this segment. Aareal Bank will thus be in a position to offer structured property financing solutions, to local and international investors, covering all types of marketable property in Central and
Eastern Europe.
Source: Aareal Bank
