KGAL Investment Management GmbH & Co. KG has acquired the Fuzja Office I building in Łódź with around 22,000 square meters of rental space on behalf of a pan-European special AIF. The property is certified with the first-class sustainability rating "BREEAM Excellent" and is scheduled for completion in the second quarter of 2022. The seller of Fuzja Office I is Echo Investment S.A., one of the largest listed Polish property developers.
Commenting on the rationale for the investment decision, André Zücker, Managing Director and Head of Real Estate of KGAL Investment Management, explains, “All the necessary ingredients for the continued evolution of the city with regard to becoming a modern and prosperous business location on the outskirts of Warsaw are evident in Łódź. If this dynamic unfolds as we anticipate, rising rents and yield compression can be expected. We, therefore, envisage good prospects for a significant increase in value in the next few years."
The Fuzja Office I office complex is part of a large-scale redesign on a former industrial site not far from the city's key institutions. The district development includes a total of 23 buildings consisting of six office properties, retail space and over 700 apartments. In addition to the high construction quality, special attention was paid to the quality of life and short distances. Fujitsu will be one of the long-term tenants.
The complex, which comprises three office buildings, offers a total of around 22,000 square meters of rental space and a total of 150 underground parking spaces and 139 parking spaces in a multi-storey car park. With the "BREEAM excellent" classification, Fuzja Office I meets the highest requirements in terms of sustainability.
“This is KGAL's fourth transaction in Poland in the last two years and the first outside of the capital city of Warsaw. With this acquisition on behalf of a large pan-European mandate, we are further enhancing our European real estate expertise," says Christian Schulte Eistrup, Head of International Business Development at KGAL Investment Management.
Savills (commercial advisory), BNP Paribas Real Estate (technical appraisal), DLA Piper (legal advice) and NOMOS (tax advice) acted in an advisory capacity on the transaction.
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