IMMOEAST is expanding its real estate portfolio in Poland further. Two major investments totalling a volume of €63 million were finalized recently in top business locations in the capital city of Warsaw: the 20,000-m² Rondo office building and the 15,000-m² Passat office building.
Rondo office building, Warsaw
The Rondo development project is particularly spectacular. In the center of Warsaw 20,000 m² of total usable space will emerge in the 17-floor office building. An underground stop directly on the premises of Rondo provides a perfect connection to the public transportation system a crucial benefit in the chronically traffic-plagued capital of Poland.
The object will be built by IMMOEAST in the scope of its 50% stake in the real estate developer S+B CEE. Autumn 2007 is slated for the start of construction. Completion will take place in summer 2009. The total investment is €36 million.
The second newcomer to the IMMOEAST portfolio is almost as big as the Rondo: the Passat office building encompasses 15,000 m² of total usable space. The building's occupancy is excellent, with the Polish building group Warbud and LG Electronics some of the most important tenants. The total investment is approximately €27 million.
Passat is directly connected to Mistral (19,500 m²), which IMMOEAST acquired at the beginning of 2006 and 100% of which is let to a subsidiary of Wiener Städtische. The location in the up-and-coming Jerozolimskie Boulevard, where in addition to Passat and Mistral IMMOEAST is also developing the megaproject Equator (125,000 m² of usable space), is ideal in every way: only ten minutes are needed to the city center and the way to the international airport is hardly any longer than a 15-minute drive.
"Rondo and Passat are genuine prime properties and fit ideally into our portfolio in Warsaw," says Director General Karl Petrikovics. "With them IMMOEAST points up its leading position on the Warsaw office market."
With both of the recent acquisitions IMMOEAST's portfolio in Poland has grown to 61 properties with total usable space of 2.2 million m² and a fair value of approximately €1.3 billion. Measured in terms of usable space, with a share of 17% Poland is the second largest investment location of IMMOEAST.
A few weeks ago IMMOEAST carried out its biggest capital measure to date, a capital increase in the range of €2.84 billion with which a €6 billion investment programme is being financed through the end of the 2007/08 business year (ending April 2008). One third, or €2 billion of this has already been finalized.