KGAL Investment Management has acquired the office property FUZJA OFFICE I in Lodz. The building offers 22,000m² of rental space and is certified with the first-class sustainability rating "BREEAM excellent". It is currently under construction and is scheduled for completion in the second quarter of 2022. The vendor is Echo Investment, one of the largest listed Polish property developers.
Commenting on the rationale for the investment decision, Andre Zucker, Managing Director and Head of Real Estate of KGAL Investment Management, said: “All the necessary ingredients for the continued evolution of the city with regard to becoming a modern and prosperous business location on the outskirts of Warsaw are evident in Lódz. If this dynamic unfolds as we anticipate, rising rents and yield compression can be expected. We, therefore, envisage good prospects for a significant increase in value in the next few years."
The Fuzja Office I office complex is part of a large-scale redesign on a former industrial site not far from the city's key institutions. The district development includes a total of 23 buildings consisting of six office properties, retail space and over 700 apartments. In addition to the high construction quality, special attention was paid to the quality of life and short distances. Fujitsu will be one of the long-term tenants. The complex, which comprises three office buildings, also offers a total of 150 underground parking spaces and 139 parking spaces in a multi-storey car park.
“This is KGAL's fourth transaction in Poland in the last two years and the first outside of the capital city of Warsaw. With this acquisition on behalf of a large panEuropean mandate, we are further enhancing our European real estate expertise," said Christian Schulte Eistrup, Head of International Business Development at KGAL Investment Management.
