Europa Capital sells City Point, Warsaw to Morley (PL)

Europa Capital LLP has sold City Point Distribution Park in Warsaw, comprising 118,000 m² of warehouse and office space and reputedly the largest metropolitan distribution park in Central Europe, to the CEIF Fund of Morley, advised by Teesland IOG, for €71.6 mln.

Europa, whose partners were Integrated Finance Group, its exclusive Country Partner for Poland, and Warimpex Finanz und Beteiligungs AG, acquired City Point in December 2004 and embarked on a programme of active asset management, which included refurbishment, repositioning and lease restructuring with a capital programme of more than €5 mln., achieving 95% occupancy over the period. Major tenants include Colgate Palmolive, South African Breweries and PZU.

Simon Hooper, Asset Manager for Central Europe at Europa Capital, commented: "The sale of City Point represents the culmination of a 2½ year programme of concentrated asset management by Europa Capital and its partners, which has added significant value to the investment. The sales price, giving the Purchaser an initial yield in the order of 6.2%, demonstrates the attractiveness of institutional income-producing products in this real estate sector in the current investment market." He added "this investment has performed strongly within Europa Fund II and has generated exceptional returns to us and our investors."

Europa Capital was advised in the sale by DTZ, and Teesland IOG/Morley by Savills.

Source: Europa Capital

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