MidPoint71, an office building in Wrocław, was acquired by Trigea Real Estate Fund, the fastest-growing Czech fund. The project of Echo Investment, which obtained the occupancy permit earlier this year, was sold for over €100 million. In another deal, three office buildings in Fuzja Łódź project were acquired by KGAL Group, an independent investment and asset manager, for over €56 million.
MidPoint71 is designed by Medusa architects and is leased above 80% by such brands as 3M GSC Poland, Pyszne.pl, PwC, CitySpace, CCC Group, and Electrolux Poland. The building is expected to be fully leased in the coming months.MidPoint71 is Echo Investment's seventh office project developed in the city.
“Wrocław is one of the strongest markets of the regional cities in Poland and continues getting interest from both tenants and investors. We are very happy to have done our first deal with Trigea and to deliver this fantastic project together that will be a landmark in the Wrocław office market. Earlier this year we divested West 4 Business Hub I and now we are thrilled that another of our Wrocław’s projects found a new reputable owner,” says Małgorzata Turek, Board Member responsible for divestments at Echo Investment.
Trigea Real Estate Fund, a Czech real estate fund established in 2019, is currently one of the fastest-growing Czech funds. Trigea focuses mainly on commercial properties, especially office buildings and retail. The fund operates in Czech Republic and Slovakia and may soon enter another CEE regions. Greenberg Traurig, Baker McKenzie and Colliers advised the seller, while Cushman & Wakefield, CMS, Sentient, and ASB Group acted as the buyers’ advisors on the deal.
Three buildings acquired by KGAL Group are an integrated part of mixed-use Fuzja project in Łódź. They are fully leased and encompass 22,000 sqm of BREEAM-certified office space. Two of them are already completed and occupied by Fujitsu Poland Global Delivery Center. The third one is undergoing finishing touches and will be taken by CitySpace, an operator of flexible office space. Fuzja is not the first destination place that caught the interest of KGAL Group. Last year the company acquired Villa Offices, a part of the Warsaw Breweries mixed-use complex.
"The transaction is yet another proof of great interest of both investors and tenants in multifunctional, urban destination projects. It is visible that investors and tenants appreciate our strategy of creating destinations, multifunctional parts of the city where people can live, work and entertain. It is also important that the office buildings sold are fully leased - mainly by Fujitsu Poland Global Delivery Centre, perfectly designed and made of high-quality materials. We are happy to welcome KGAL Group as the co-host of Fuzja, an excellent new part of Łódź,” says Małgorzata Turek, Echo Investment’s Management Board Member responsible for the investment department.
“We are delighted to be working with Echo Investment once again on a destination project transforming the city. The Fuzja office buildings, thanks to their quality and reputable tenants, are proving their long-term value and are an excellent asset for the strategic investor,” comments Adam Scheitza, Transaction Manager of KGAL Investment Management.
KGAL is an independent investment and asset manager with a managed investment volume of more than €16.5 billion. It was founded more than 50 years ago and is headquartered in Grünwald near Munich. Colliers, Allen & Overy and Baker McKenzie were Echo Investment’s advisors in the transaction, whereas Savills and DLA Piper advised the buyer.
