Globalworth Poland announced the acquisition of Spektrum Tower in Warsaw from Europa Capital for €101 million. With this acquisition, the combined value of the company's portfolio is now broadly split between Romania and Poland.
Spektrum Tower is a high-rise office building in the heart of the Warsaw Central Business District with a gross leasable area of 29,500 sqm, annual contracted rental income of c. €6.3 million, occupancy of c. 93% and a weighted average lease length of approximately 5 years. The project underwent extensive refurbishment in 2015 when it was converted into a multi-tenanted building, and today hosts over 60 companies.
Dimitris Raptis, Deputy CEO and Chief Investment Officer of Globalworth, commented: "Spektrum Tower is another great addition to Globalworth's portfolio, consistent with acquiring assets with asset management and value-add potential. We are delighted to welcome a significant number of new tenants with whom we look forward to developing long-term partnerships. With nearly €350 million of acquisitions completed in the first half of 2018, we have established our position as the largest institutional office investor and landlord in Poland and strengthened our position as the leading office investor in Central and Eastern Europe. We continue to assess attractive opportunities and make progress with our developments in our two main markets, Poland and Romania."
James Pennington, Director, Asset Management at Europa Capital, comments the disposal: “We are proud to be selling the high-quality Spektrum Tower to Globalworth after completing a transformational refurbishment. We have had no tenant departures under our ownership highlighting the high standard of the refurbishment. This sale concludes Europa Capital’s Central European investment activity for Europa Fund III.”
The total transaction consideration (including repayment of existing debt in the company owning the asset) is €101 million. This will be funded from GPRE's existing cash resources.
The property was managed by WX Management Services, who coordinated the marketing, leasing, tenant fit-out and building refurbishment work. Apleona GVA acted as the exclusive broker to the seller. The seller was also advised by Dentons, while Linklaters, BuroHappold, Deloitte and CBRE assisted the buyer.
With the acquisition of Spektrum Tower, the combined value of the company's portfolio is now broadly split between Romania and Poland. Following the company's successful expansion in Poland, the Board considers both Romania and Poland as its primary markets of focus. Accordingly, and as permitted by the investment policy, the Board has approved the lifting of the restriction which would have prevented the acquisition of any asset resulting in more than 50% of the company's net asset value (at the time of investment) being attributable to assets located in SEE and CEE countries other than Romania.
