News Article Cavatina Holding Erste Bank A.G.  Kraków office Poland Raiffeisen Bank refinancing
by Property Forum | Investment

A consortium consisting of Austrian banks: Erste Group Bank AG and Raiffeisenlandesbank Niederösterreich-Wien AG, provided financing in the amount of up to €70 million and PLN 10 million to two special purpose vehicles from the Cavatina Holding S.A. group. implementing the Ocean Office Park complex in Kraków. The funds from the loans will be used to finance and refinance expenditure related to the construction and finishing of office buildings A and B in a multifunctional investment in Kraków's Zabłocie district.

"Ocean Office Park is our next successful project in Krakow. The commissioned first stage attracts tenants from various sectors, with lease levels reaching over 90%. The funds obtained in a package from Erste and Raiffaisen secure the financing or refinancing of the capital expenditure of the ongoing construction of the Ocean B building, which will provide as much as 28.6 thousand square meters of space to the office market, finishing the last vacant spaces in the Ocean A building and VAT revolving financing," says Daniel Draga, Vice President of the Management Board of Cavatina Holding S.A.

In December 2021, the Group obtained funds in the amount of €82 million and PLN 42 million from BERLIN HYP AG based in Berlin and Bank Pekao S.A. for activities related to the flagship multifunctional project - Global Office Park - in Katowice. In January 2022, another subsidiary of the Cavatina Holding S.A. Group acquired a €50 million investment loan from the German bank Norddeutsche Landesbank - Girozentrale for the refinancing of the Tischnera Office building in Kraków.

"The concluded loan agreements are our next step towards increasing the share of financing our operations in euro, which allows us to reduce the average cost of debt financing for the Group and to make the Group's results resistant to possible further interest rate increases by the Monetary Policy Council. At the end of 2021, more than 50% of our liabilities were based on interest rates for the euro. Now this share will increase even more, which is of great importance for profitability in the environment of further increasing interest rates for the zloty. It is worth mentioning that taking out debt financing in euro does not pose a currency risk for us, because the flows from the lease or sale of projects that will be used to pay these liabilities are also recorded in euro," adds Daniel Draga, Vice President of the Management Board of Cavatina Holding S.A.

Ocean Office Park is a mixed-use investment, which will provide over 46,000 sqm of office space under the planned four stages. sq m (GLA) offices. The advantages of this project are: original, well-suited to the surroundings architecture, location allowing easy communication with other parts of the city, extensive service offer, as well as care for creating a space for effective work and relaxation thanks to numerous amenities. The project will be complemented by a residential building offering Resi Capital apartments for rent.

In accordance with the adopted by the Cavatina Holding S.A. Group philosophy of sustainable construction, the Ocean Office Park complex is designed in accordance with the highest standards of international BREEAM certification. Building A has already obtained the BREEAM certificate with an Excellent rating, as well as the WELL Health-Safety Rating.