DEGI Deutsche Gesellschaft für Immobilienfonds mbH is investing around €122 million in the Focus Filtrowa office and business building in the central business district of Warsaw, Poland.
Focus Filtrowa office and business building.
Completed in 2000, the building has a total area of 31,656 m², and has been awarded the title of 'Poland's best office property' by the Polish Chamber of Architects and Engineers. It has been rented out almost completely to tenants with high credit ratings, and sold to DEGI by a fund company owned by the initiators of the closed funds Sachsenfonds GmbH and LHI Leasing GmbH. This purchase increases Poland's share in DEGI International's country breakdown to around 18% in the short term.
Rental growth anticipated
Poland, with GDP forecast to rise by 4.8% in 2007, and unemployment continuing to fall, is seen as one of the growth drivers in Central Europe. The office market in its capital (population 1.7 million) particularly in the central business district, with office space totalling 1.4 million m², is characterized by steeply rising demand coupled with weak area growth. "Against this situational background, we are confident that at this location, especially with high quality properties, we are going to be seeing rental increases of up to 20% in the next three years," says DEGI's Managing Director Malcolm R. Morgan.
Optimum transportation links and variable area configurations
The 11-story business center consists of four separately accessible sections, and excels in terms of high construction quality and an elegant, well-lit atrium. The individual wings of the building can be divided up into three rental units per floor. In addition, the building possesses underground parking space for 406 cars. The principal tenants are Deutsche Bank Polska S.A., Bristol-Myers Polska, BRE Bank Hipoteczny S.A., GlaxoSmithKline Healthcare and BMW Polska. The property is situated in a very good location on the southern edge of the central business district, and can be conveniently reached by metro, tram and bus lines. Warsaw's international airport is just 15 minutes away by car.