SEB Asset Management acquires office building in Warsaw (PL)

SEB Asset Management has acquired a fully let office property in Warsaw for SEB Europe REI's portfolio. The German real estate special fund is aimed at institutional investors and has a conservative risk/return profile.

The grade-A property is in the center of the Mokotów district, a popular office location that is only 10 minutes' drive from the airport. The 11-story office building has total rental space of approximately 13,270 m² and 185 parking spaces. It was completed in 2008 and has state-of-the-art appointments.

Its main tenants include Generali, AC Nielsen and ILF Consulting Engineers, and the average remaining lease term is 5.4 years. The property was sold by Investec GLL Global Special Opportunities Real Estate Fund, which is managed by GLL Real Estate Partners GmbH. The purchase price is €38 million.

The economic conditions on the Polish market are promising. Poland has come through the crisis extremely well and continues to offer compelling, above-average economic growth by European standards. Almost all large, well-known foreign companies have branches in the capital, Warsaw.

As demand for office space outstrips supply, there will be a shortage of modern business premises in suitable locations in the next 12 to 18 months. As a result, rental prices can be expected to rise.

SEB Asset Management now holds eight properties in Poland for the various funds it manages, with a total of approximately 119,200 m² of space and a market value of around €352 million.

Source: SEB Asset Management

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