Yareal International NV is pleased to announce the sale of The Renaissance building, a well located A class office building to a Spanish Investor. This marks a further step of Yareals development in Poland.
The reported price of the transaction was approx. €25 million at one of the lowest yields recorded in Central And Eastern Europe 5.49%. CB Richard Ellis, real estate consultants together with Gide Loyrette Nouel law firm acted as exclusive advisors during the transaction process.
The Renaissance Building is A Class office buidling located on Plac Zbawiciela, at the junction of Marszałkowska and Mokotowska St. The building was completed in November 2004 and was constructed behind the original historical facade. The building comprises 5,197 m² of gross rentable space. The property contains 4,599 m² of office space on the mezzanine and five upper floors as well as 598 m² of retail space on the ground floor.
Eric DAPOIGNY Managing Director of Yareal commented: This transaction is a real success for our company, during all the development of this project we have focused on highest quality standards, trying to make this building a reference of our know-how, and of our willingness to preserve history and urbanism. Due to these facts, Renaissance has been leased quickly to very good tenants such as POLBANK and French Chamber of Commerce and sold in very satisfactory conditions. We have created a very professional team together with CBRE and GLN which has facilitated the negotiations with investors.
We are currently developing some other similar developments in the town centre both for residential and offices. We want to create living environments for families and companies, always with the same focus on quality that had made our group COGEDIM a major reference in the European upper-range market. We also want all projects to blend harmoniously into its street and urban surroundings.
Pawel Welo, Director at Investment Department of CB Richard Ellis in Warsaw commented: We are very pleased to advice Yareal. on this transaction as Yareal was able to achieve a record-breaking yield that indicates the quality of the building and yet again shows further yield compression on the Polish Real Estate Market.
Bertrand Oldra, Head of Real Estate Department of GLN in Warsaw, commented: Refurbishment of existing buildings is always, from the legal point of view, an exiting and demanding exercise, but ultimately, leading to such a straightforward sale process! Yareal team certainly deserved this happy end on Renaissance.
2005 was a significant year for investment market in Poland. The amount invested in Poland in 2005 reached €3.1 bln, which represents a 148% increase on 2004. The overall space acquired totalled over 1.52 mln m². The lions share of 2005 investments was undertaken in retail sector totalling about €1.80 bln, followed by office sector with over €1.21 bln and industrial sector with €97 mln. Yields continued to compress in 2005 due to a lack of institutional products and this resulted in the fact that some of the buildings were sold at yields well below 6%. We expect further yield compression, especially in the office sector. We anticipate also development of the resale investment market, which means that more and more properties will be sold for the second time. added Pawel Welo.