CA Immo has signed and closed the sale of the Zagreb Tower office building to Austrian property company S Immo AG at a 5% premium to H1 2020 book value.
"In parallel with our portfolio growth in CA Immo's core markets, we are also continuing to pursue our non-core sales strategy. With the sale of the Zagreb Tower, we are withdrawing from a small CEE market at a sound sales price. In 2018 we started to speed up the process of focusing our strategic CEE portfolio on large-space, modern office properties in the big CEE capitals where we have local management teams in country, and where we believe we can generate appropriate level of risk adjusted returns. Since then, we have completed the exit from Slovenia, Bulgaria, Russia, Ukraine as well as the exit from all secondary cities in Hungary, Romania and Poland,” said Keegan Viscius, Chief Investment Officer of CA Immo.
Zagreb Tower is a Class A building in an up-and-coming business district in the heart of the Croatian capital. The 79-metre structure, which commands superb views of the city, is one of the most impressive landmark buildings in Zagreb. The office tower with a total of 25,900 sqm of rentable area on 22 floors and a 9-floor side wing offers a comprehensive range of services and facilities for high tenant comfort: modern technology, flexible design, air conditioning but also openable windows, areas for coffee breaks and informal meetings (cafés, restaurants, shops in the building), a fitness centre, on site facility management and 24-hour security. In addition, the building has a reception in the ground floor entrance area, an underground car park and around 500 outdoor parking spaces. Its expansive glass facades admit maximum natural daylight. Zagreb Tower meets high sustainability standards and has a BREEAM Excellent certification. The property generated € 3.6 million of annual gross rental income and was fully let (99%) as at 30 June 2020.
