Echo Investment has signed a preliminary agreement with Invesco Real Estate European Fund (IREEF) to sell its flagship project, the Q22 office building in Warsaw.The value of the transaction will be established in the final agreement and it will be calculated on the basis of a formula which takes into account the actual sales date, a commercialization level and a cap rate of 5.35%.
Q22’s construction was completed in July 2016. The list of its tenants includes such names as Deloitte, Allegro, Linklaters, William Demant, Vestor DM, Citi Handlowy, Savills and White and Case, as well as Griffin Real Estate, Echo Polska Properties and Echo Investment itself. At the moment, Q22 space has been leased in more than 80 percent, and by the end of the year will reach 90 percent.
“Q22 is our highest, the most innovative and the most prestigious project, so we are happy it goes into good hands. The deal with Invesco Real Estate stands in line with our new strategy of profitable growth, based on being a pure developer delivering high quality developments and selling them when they are completed and leased up”, said Nicklas Lindberg, Echo Investment CEO.
Q22 is a 155-meter-high, modern office building located in the business district of Warsaw, in the junction of Jana Pawła II and Grzybowska streets, offering 53 000 sqm of GLA. Its luminous shape has been designed by Kuryłowicz & Associates team of architects. Its construction used 9,500 tons of steel (the amount enough to build 190 cargo cars), 34,000 tons of concrete (twice as much as the construction of Warsaw’s Świętokrzyski Bridge had used) and 1,700 kilometres of electric cables.
Linklaters and CBRE acted as the advisors to Echo Investment, while Greenberg Traurig and Colliers International acted in the same capacity for Invesco Real Estate.