On behalf of Central European Real Property Fund II (CEE II) Invesco acquired Raiffeisen Business Center a 16,500 m² office building prestigiously located in central Warsaw, close to the Polish parliament and neighboured by numerous embassies. The building has a ground floor retail of approximately 1,500 m² occupied by Raiffeisen Bank and retail tenants as well as a popular cafe bar. The property is 94% let to Raiffeisen Bank and associated companies with the balancing 6% let to tenants other than Raiffeisen Bank.
Seller of the property is Raiffeisen Property Management, a company specialized in real estate development in CEE region and a subsidiary of the Austrian business bank Raiffeisen Zentralbank.
The purchase is the first investment for the CEE II Fund. Doris Schumacher, Fund Manager for the CEE II Fund said: "We are very pleased with this investment as it is an ideal property for the Fund which will form a solid base for the future portfolio.".
In terms of yield paid for the building and price per square meter of rentable area acquisition terms for the RBC are in line with current values for investment properties in Central Europe.
In this acquisition the buyer was advised by Jones Lang LaSalle. Tomasz Puch, Associate Director at Jones Lang LaSalle Capital Markets team in Poland, said that with the experience of the Invesco team gained through a number of acquisitions successfully completed in Poland, with the ability to acquire both prime and more complicated assets and with their return expectations being very reasonable, Invesco is definitely one of the most proven investors in the Polish market place and one of the best choices for developers planning to sell their properties.
He also commented: "I believe that with the restricted product availability throughout the region, CEE II Fund managed to secure very good quality product in prestigious location and with long-term income from a high quality tenant."
INVESCO Real Estate is the property investment management arm of AMVESCAP PLC. INVESCO Real Estate manages more than €20 billion* of property and real estate securities worldwide. AMVESCAP is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO, and Atlantic Trust brands, AMVESCAP strives to deliver outstanding investment performance and service through a comprehensive array of retail and institutional products for clients around the world. The Company is listed on the London, New York and Toronto stock exchanges with the symbol "AVZ." Additional information is available at www.amvescap.com.
Source: Jones Lang LaSalle