by Property Forum | Investment

CA Immo signed and closed the acquisition of Postepu 14, a Class A office building located in the Mokotow district of Warsaw, from developer HB Reavis. The property totals around 34,500 sqm GLA and is nearly fully let to tenants such as AstraZeneca and Samsung Electronics. The purchase price is approximately €87 million, with annual gross rental income of around €6.5 million, reflecting a 7.5% gross initial yield.


Following the sale of Zagrebtower in October 2020 for a 5% premium to book value, with this transaction, CA Immo takes another step in its core market expansion strategy and capital rotation program, setting the path for the continued growth of recurring earnings while improving the underlying quality of the portfolio. As planned, the acquisition will contribute to CA Immo's recurring earnings (FFO) in the fourth quarter of 2020.

Keegan Viscius, Chief Investment Officer (CIO) of CA Immo: “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 Höfler, Head of Investment Management AT and CEE, adds: “Acquiring one of the most state-of-the-art office buildings in the district of Mokotów is a 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.”

 

Postepu 14 offers 34,500 sqm of leasable space. The structure stands out for its green solutions, including clean energy from wind turbines, cycling infrastructure, an electric vehicle charging station, energy-saving lifts and lighting as well as the use of rainwater to water plants and cool the AC systems. Developed to a high international standard and completed in 2015, the property has a BREEAM Excellent sustainability certificate. The property 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.

Advisors to CA Immo were Greenberg Traurig (legal), KPMG (tax), Gleeds (technical) and Cushman & Wakefield (commercial).