Cromwell European Real Estate Investment Trust (CEREIT) has completed the acquisition of two office buildings in Krakow, Poland for a total of €80m from Brassa SP. The properties will be managed by CEREIT’s sponsor, Cromwell Property Group, through its integrated European investment management platform.
The Green Office is a freehold, predominantly office building, which was purchased for €52.2m. Comprising 22,954m² of lettable space, the asset is located in ‘Krakowski Park Technologiczny’ Special Economic Zone, which is a leading office location for technology companies in Krakow. It is currently fully let to Motorola Solutions Systems and UBS Krakow, with a weighted average lease expiry of 6.4 years. The property is close to the Krakow motorway ring road and benefits from access to the Krakow Airport.
The second property, Avatar was purchased for €27.8m. A predominantly office building situated in an established and popular office location close to the centre of Krakow, it comprises 11,341m² of space which is fully let to BGŻ BNP Paribas, with a weighted average lease expiry of 5.6 years. It has good transport connectivity with the city centre ring road and is rated ‘Excellent’ by BREEAM.
Karol Pilniewicz, Head of CEE at Cromwell, said: “These buildings complement the CEREIT portfolio, being fully occupied assets with stable income. Located in Krakow, one of Poland’s major cities with some of the best infrastructure in the country, they are well placed to benefit from the country’s favourable economic conditions and robust office market. Poland’s office property market currently offers more attractive yield spreads compared to those available in many other European countries as the persistent supply?demand imbalance puts upward pressure on rents for quality space.”
