Skanska has sold two office buildings in Poland – Nowy Targ in Wroclaw and High5ive in Krakow –to real estate funds managed by Credit Suisse Asset Management Global Real Estate.
The Nowy Targ project in Wroclaw, along with the third and fourth buildings of the High5ive office complex in Krakow were the subject of a recent transaction concluded between Skanska and Credit Suisse Asset Management Global Real Estate. The total leasable area of both developments comprises approx. 60,300 sqm: 22,800 sqm in Nowy Targ and 37,500 sqm in High5ive.
“Top office buildings in Poland aren’t just found in Warsaw, but also in other regions and cities. There is a vast variety of investments to choose from and this brings in a lot of interest from investors who are willing to invest in more than one location and further diversify their investment portfolios. Skanska sees this potential and is present in seven cities across Poland. We have observed that the markets in Wroclaw and Krakow have become attractive for investors due to their favourable conditions and impressive scale of business development,” says Adrian Karczewicz, Head of Divestment at Skanska commercial business unit in CEE.
The business services sector is one of the main drivers for office market development in Poland. Krakow and Wroclaw are leading cities and attract companies and tenants primarily from the BPO/SSC/IT sectors. According to a recent ABSL report, approx. 307,000 people work in business services centres in Poland, with this number being expected to rise by almost another 30,000 by the first quarter of 2020.
Nowy Targ, which has just been completed, is a seven-story development in the heart of Wroclaw’s city centre. This Class A office building has a total gross leasable area of 22,800 square meters and offers 195 underground parking places. Its office space is already fully leased. Tenants include companies such as Tillberg Design of Sweden and SpyroSoft S.A. The last ground floor premises of the building are in the process of commercialization. The property is a 5-minute walk from the city’s historical Town Hall and has access to numerous public transportation options. Nowy Targ is aiming for LEED Platinum and has already received Green Building certification. It is also expected to obtain a “Building without Barriers” certificate, thereby verifying that the building is adapted to the needs of people with disabilities as well as those visiting with small children.
The second subject of the portfolio transaction between Skanska and Credit Suisse Asset Management Global Real Estate includes the third and fourth buildings of the High5ive office complex in Krakow. The buildings’ completion dates are scheduled for the fourth quarter of 2019 and the first quarter of 2020 respectively. The divested segment of the High5ive office complex provides a total leasable area of 37,500 square meters and 414 parking places. The two buildings are highly efficient and technically and practically independent to provide additional flexibility. 1,900 square meters of so-called "green concrete", which cleans the air from harmful substances such as car exhaust fumes, is to be built around them. High5ive has been chosen by international high covenant tenants such as Amway Business Centre, Ocado Technology, Universal-Investment and Schibsted Tech. Both buildings are aiming for LEED Platinum and “Building without Barriers” certificates.
