CA Immo has acquired Postepu 14, a landmark Class A office building located in the Mokotow district of Warsaw. The property totals around 34,500m² GLA and is nearly fully let to investment grade credit tenants such as AstraZeneca and Samsung Electronics. Developed to a high international standard and completed in 2015, the property has a BREEAM Excellent sustainability certificate. The complex consists of two sections with seven and ten floors, connected by a four-story central section, creating an efficient and flexible "H" shape floor plan. The purchase price is approximately €87m, with annual gross rental income of around €6.5m, reflecting a 7.5% gross initial yield.
Keegan Viscius, Chief Investment Officer (CIO) of CA Immo, said: “With the Postepu 14 office building we are buying one of the best assets in terms of quality, tenant covenant and location in one of the most important office submarkets in Warsaw. With a day one gross rental income yield of 7.5%, this investment will provide immediate rental income secured by investment grade tenant covenants and a basis that reflects a discount to replacement cost and under rented in place rent. It´s located in a submarket with resilient tenant demand and zero new construction pipeline.”
Hedwig Hofler, Head of Investment Management AT and CEE, added: “Acquiring one of the most state-of-the-art office buildings in the district of Mokotów is perfect exposure for us in this strong submarket. Offering green solutions like clean energy from wind turbines as well as the use of rainwater to cool the AC systems, Postepu 14 meets highest sustainability standards and supports our transition to low-carbon, sustainable business operations.”
