Immofinanz is acquiring the Warsaw Spire Tower Building in the Polish capital through the purchase of the respective property holding companies. This roughly 220 metre-high office tower has approximately 71,600 sqm of rentable space, with roughly 65,000 sqm representing offices and the remainder used primarily for retail purposes. The agreed property value for the office tower amounts to approximately €386.0 million. The expected annual rental income based on invoiced rents totals roughly €19.6 million. The sellers are Ghelamco Group, which completed the tower in 2016, and Madison International Realty, a global Real Estate Private Equity Firm.
“This transaction represents a strong growth step for Immofinanz. In accordance with our strategy, we first concentrated our portfolio and will now significantly strengthen our standing investments and sustainable earning power with this top property“, indicated CEO Oliver Schumy on the planned acquisition. ”Warsaw is one of the most promising office markets in our core region due to its dynamic development and favourable economic indicators.“
The acquisition was approved by the Immofinanz Supervisory Board. The contract signing is expected to take place shortly, as is the filing of the necessary acquisition documents with the Polish anti-trust authority. Provided the transaction is approved by the anti-trust authority, the closing is expected to take place within the coming weeks. The transaction will be financed with both equity and debt.
The Warsaw Spire Tower (building section A) has 49 floors and is the highest office tower in Warsaw. The office space is fully rented, among others to Goldman Sachs, Samsung, JLL and Mastercard. The average remaining term of the contracts (WAULT) equals approx. 4.6 years.
The tower is situated in the rapidly growing City Center West district. The location next to the Daszynskiego roundabout on Plac Europejski offers excellent connections for private transport as well as public transportation, for example with a station in Warsaw’s new second underground line and numerous tram and bus connections.
Immofinanz’s property portfolio in Poland had a book value of €760.3 million as of 31 March 2019, which represents 17.2% of the total portfolio. The 26 standing investments have approximately 377,100 sqm of rentable space and an occupancy rate of 93.0%.
