M7 Real Estate has sold three assets in Poland, on behalf of an M7 vehicle, PVBRI. The properties include two office buildings in Poznan, Dwor Hamburski, and RB House, comprising 3,741m² and 2,431m² of space respectively, to local investors. M7 has enhanced the income profiles of both properties which were sold within a very short time of being marketed. Zgorzelec Plaza, a 12,624m² shopping centre located in Zgorzelec on the border with Germany, has been sold to DL Invest Group, a Polish developer and investor specialising in retail centres and office buildings, which is based in Katowice.
Following the acquisition of the asset in 2017, M7 extended 14 lease agreements and signed six new lettings, significantly increasing both the WALT and the occupancy. Through the implementation of a comprehensive asset management plan involving the expansion of the food court, M7 has successfully repositioned Zgorzelec Plaza which has become one of the most popular shopping centres in the city centre and attracted new tenants. Footfall and turnover achieved record levels in 2019 following targeted events organised for Christmas, Valentine’s Day and the Easter holiday.
Katarzyna Parkot, MD Poland at M7, commented: “These sales demonstrate our ability to successfully turn around formerly distressed assets; improve their performance by leveraging our asset management expertise and local knowledge; and source suitable purchasers. Additionally, by increasing the values of these buildings, we have improved the recovery to the senior lender.”
