Azora Europa has sold two office projects located in Krakow, Green Office and Avatar, to Cromwell European Real Estate Investment Trust (CEREIT) for €78.2m.
Green Office is a complex of three office buildings totalling 22,300m². It is located in Czerwone Maki Street in Krakow, with Motorola Solutions and UBS Business Solutions as the main tenants. Avatar, located at Armii Krajowej Street in Krakow, offers 11,200m² of office space. The entire building is let to BNP Paribas bank.
Anna Szelc, representing Azora Europa in Poland, said: “The sale of our Krakow assets in the current market situation and after successful asset management activities were planned in accordance with our long-term strategy. Since its acquisition, Azora has made improvements to the buildings and extended the lease agreements including the latest successful lease extension with Motorola Solutions. I believe Avatar and Green Office are an ideal investment product for a dividend-oriented CEREIT.”
Karol Pilniewicz, Head of CEE at Cromwell, said: “These buildings complement the CEREIT portfolio, being fully occupied assets with stable income. Located in Krakow, one of Poland’s major cities with some of the best infrastructure in the country, they are well placed to benefit from the country’s favourable economic conditions and robust office market. Poland’s office property market currently offers more attractive yield spreads compared to those available in many other European countries as the persistent supply-demand imbalance puts upward pressure on rents for quality space.”
