SCPI Transitions Europe managed by Arkéa Real Estate Investment Management has acquired Lastadia Office, a fully let office building located on an island by the western bank of the Oder River in Szczecin, from Greenstone Asset Management. The value of the deal has not been revealed.
The vendor was advised during the transaction by Cushman & Wakefield and the law firm LegalKraft. The advisers of Arkéa REIM were Sienna Investment Managers, Syrena Real Estate and Dentons.
Szczecin is one of Poland’s key office markets and well-known for the growth of offshore wind energy, business connections with Germany and Scandinavian countries, as well as well-developed infrastructure making it a strategic hub for European e-commerce. Investors are attracted to the city, among other things, by Łasztownia, an island located between the western and eastern banks of the Oder River, which is becoming a new heart of the city as a result of its revitalization, which began over a decade ago. There are also further plans to build more attractive public spaces in the city, to develop public transport and to create new business growth opportunities.
"We are pleased to have completed the sale to SCPI Transitions Europe, a French institutional fund managed by Arkéa REIM, looking for investment grade, secure investments. We also appreciate to be retained as asset manager in the project", says Stephane Chauvel, Partner, Greenstone.
"Lastadia is our second successful exit from the office project after the sale of Tensor in 2022. During the 5-year holding period Greenstone managed to significantly increase the WAULT and average rent which allowed us to generate an exceptional return for our investors", adds Marcin Gajewski, Partner, Greenstone.
Lastadia Office offers more than 12,600 sqm of office space spread over six above-ground floors and 258 surface parking spaces at the back of the building and on a neighbouring plot which has also been sold as part of the transaction. The building was completed in 2013 and is certified BREEAM Very Good.
"The location and the standard of the building as well as long leases with strong and well-recognized tenants and low office supply in Szczecin have all contributed to the successful commercialisation of Lastadia Office and ultimately to this investment deal. Key tenants of the building include e.ON, home.pl and mBank. These factors, combined with the attractiveness of Szczecin as a north-western harbour city attracting international business to Poland, have seen reputable investors like Arkéa REIM on behalf of SCPI Transitions Europe turning its attention to Lastadia Office”, explains Marcin Kocerba, Partner, Capital Markets, Cushman & Wakefield Poland.
Arkéa Real Estate Investment Management, a subsidiary of Crédit Mutuel Arkéa specialises in real estate funds management. It operates on several key European markets to provide commercial and residential real estate investment expertise.
"This first acquisition in Poland, in Szczecin, 150 km from Berlin, gives us a foothold in an under-supplied market with a historically low vacancy rate and solid fundamentals, with numerous infrastructure projects partly financed by the European Investment Bank. This asset will generate a particularly attractive return thanks to a rental risk shared between more than thirty tenants, with an average firm lease term of 6 years", explains Abdelkader Guennioui, fund manager at Arkéa REIM.
Founded in 2017, Greenstone is a boutique real estate private equity and investment management company. To date, it has invested more than €100 million in Polish real estate assets.
