First Property Group has acquired another 7,171 sqm (or 32.1%) of Blue Tower in Warsaw city centre, bringing its ownership of the property up to 80.3% (17,937 sqm).
First Property Group already owns 90% of the management company constitutionally tied to managing Blue Tower. The company, therefore, now has effective total control of the 28-storey property, which has a total area of the 23,545 sqm.
The investment in the additional 32.1% stake comes to PLN 40.4 million, payable in seven instalments over a six-year period. The first instalment of PLN 6 million has already been paid and ownership of the property transferred to the group. First Property Group bought its initial stake in the building in 2013
"I am excited by the group’s acquisition of a further 32.1% interest in Blue Tower, taking our total interest in the building to 80.3%. Our first investment in this office block was in 2008 and it has made a major contribution to our profits over the years. I expect this to continue and grow. It is a landmark building in Warsaw, centrally located, opposite the City Hall, above a metro station and at the junction of major bus and tram routes. There is a substantial programme of refurbishment and leasing ahead but I anticipate this should go well", commented Ben Habib, the CEO of First Property Group.
Of the space acquired, 2,012 sqm is leased to Pekao Bank for PLN 55 per sqm or PLN 1.33 million per annum.
First Property Group plc, which is listed on London’s AIM market, has offices in London, Warsaw and Bucharest. It is active in the UK and the CEE region.
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