Valad Europe has acquired the Warsaw Corporate Center in Poland from MEAG for its VCERP fund. The acquisition also marks the diversification of VCERP’s investment strategy into the office sector.
The property was developed in 1993 by the partners of Golub Raczkiewicz Epstein Venture. MEAG acquired the Warsaw Corporate Center in 2007 from a group of private investors for its special real estate fund MEAG Euro Pro. The transaction was the first direct acquisition for MEAG in Poland.
The centre comprises approx. 8,693m² of predominantly office accommodation across nine floors, with ground floor retail space. It is located in the immediate vicinity or Warsaw Central Station, the Marriott Hotel and Zlote Tarasy Shopping Centre. In recent months, MEAG has realised a number of lease renewals and new leases, with the asset currently let to several well-known occupiers including Danska Bank, Broadway Malyan and OSTC.
Karol Pilniewicz, Valad Europe’s head of central europe, commented: “This is a high quality acquisition for VCERP and a well-known asset in Warsaw. In the past few months, we have started to see some excellent value-add opportunities in the Central European office sector, particularly in the major cities like Warsaw and Prague, which has led us to broaden the Fund’s investment strategy to include the office sector.”
Leon Ballard, associate director at JLL, added: “The office investment market in Poland has commenced at pace in 2016, with a number of transactions at advanced stages and a compelling product pipeline set to meet investor appetite. The sale of Warsaw Corporate Center marks the end of a fruitful nine year relationship, MEAG have had with the property and the recent leasing success bodes well for Valad’s investment going forward.”
Dentons advised Valad Europe on the transaction. JLL and Linklaters advised the vendor.
