The Valesco Group acting together with AIP Asset Management have exchanged contracts to acquire the newly developed landmark Twin City Tower, principally let to Amazon, from HB Reavis. The purchase price totals €120m and reflects an acquisition yield of 5.75%.
Located in the Nove Nivy zone, a core location in Bratislava’s new CBD, the building was completed at the end of 2018. Already 100% let, the 23 storey office tower with three underground floors, offers 34,752m² of high spec space including a rooftop garden and panoramic views. The scheme also includes 1,360m² of retail and 456 car parking spaces.
The building’s attraction to multinational tenants is reflected in its current strong line-up of occupiers. Amazon is the principal tenant with a long-term lease and occupies the HQ asset to run its management functions for Central Europe. The building is located in an area of the city which has become the focal point for new development and a flourishing ecosystem, with other tenants in the immediate vicinity including Swiss Re, SAP, Bayer, Compass Group and PWC.
Shiraz Jiwa, Founder and CEO of The Valesco Group, commented: “This prime asset coupled with an exceptional principal tenant in Amazon in the growing core of Bratislava offers a unique and compelling investment opportunity. It is rare to find an alignment of macro, micro and real estate fundamentals that will together drive value over our holding period. Furthermore, we are seeing substantial blue-chip corporate migration to the City and an influx of international capital attracted to the investment thesis. Being only a 40-minute drive from Vienna, but with a very different yield profile of almost 300 basis points, this offers the opportunity for investors to benefit from a pricing dislocation play, whilst the fundamentals underpinning the income are very attractive. It is particularly pleasing to be adding Amazon to our growing portfolio of coveted tenants.”
Marian Herman, Group CEO, HB Reavis, added: “The Nove Nivy zone in Bratislava is a showcase of our strategy offering necessary scale to deliver not only quality development but also value-added services and content. Twin City Tower was among the first projects in the area, fully leased months before its opening. Our Workspace as a Service strategy is becoming a reality thanks to the already existing business ecosystem of attractive tenants ranging from freelancers, through start-ups and scale-ups to large corporations. Innovative technologies and community building services and events are much appreciated by our tenants, as they are a good talent attraction and retention tool. And there is much more to come. We look forward to providing other additions to the zone, which will enhance the productivity and wellbeing of its users.”