Madison International Realty has acquired a stake in the newly developed Chmielna 89 landmark office building in Warsaw’s CBD from the Cavatina Group. The acquisition values the project at over €100m. Chmielna 89 is fully let to Poland’s largest bank and one of its oldest financial institutions, PKO BP, on a ten-year lease. Located in the business centre of Warsaw, Poland’s leading office market, between Chmielna Street and Aleje Jerozolimskie, the City’s main east-west artery, the 14-storey building has a highly characteristic design resembling a giant crystal and creating an easily recognizable new landmark on the Warsaw skyline.
The building offers over 25,000m² of grade A new office space and is fitted with a number of features to promote occupier wellness including 2.8m windows to allow for maximum daylight, state of the art air conditioning systems, 11 lifts and a series of distinctive green terraces providing 370m² of outside space. The office accommodation is served by 644m² of ‘in-house’ amenities on the ground floor, including retail dining and café areas. The building is further served by 122 parking spaces across two underground levels in addition to its excellent public transport connectivity and proximity by foot to many residential areas.
Chmielna 89 has been awarded a BREEAM excellent certificate and its sustainability and design credentials were further recognised at the 2018-2019 International Property Awards in London. where it received the "Best Office Development in Poland", "Best Office Development in Europe" and "Best International Office Development" awards. In 2020, the building was awarded in the Property Design Awards competition in the category: office building.
Matthias Cordier, Managing Director at Madison International Realty commented on the investment: “Through this transaction, we have secured a stake in a brand new landmark office in Warsaw CBD which is fully let on a long lease to Poland’s largest and best-known banks, PKO PB, at an attractive yield. We are strong believers in both the strength of the prime Warsaw office market and, more generally, the important role we believe the office will continue to play in the daily working lives of people post COVID. This acquisition further extends our Polish portfolio, following our purchases of a c66% stake in Capital Park last year and our investment into the ELI logistics platform. The transaction is typical of our investment approach whereby we find partners wishing to partially exit their investments in order to recycle capital to in other projects and we now look forward to working with the Cavatina team.”
“The Chmielna 89 project in Warsaw is distinguished by unique architecture, attention to detail and an excellent location. We are convinced that this award-winning building will be a true pearl in Madison International Realty's portfolio. We also have no doubts that its timeless, original shape, highest quality of workmanship and finishing will be popular among renowned tenants for many years,” said Łukasz Żelezik, Executive Director - Leasing, Cavatina Holding. “The sales contract for the Chmielna 89 building is our first joint transaction with Madison. We hope that this is just the beginning of a fruitful cooperation between both companies.”
