HB Reavis has completed a €510 million refinancing of Varso Place, its flagship Warsaw development, with two new banks joining the credit consortium. The financing increased by €35 million from the previous €475 million loan on improved terms.
On October 2nd, Varso Place will host Property Forum's upcoming conference, CEE Property Financing Update 2025, with most of the involved banks participating.
The original loan, which was the largest single commercial real estate financing in Central and Eastern Europe, has been refinanced for five years. The €510 million is split into €258 million for Varso Tower and €252 million for the Varso 1 and Varso 2 office buildings.
The seven-bank consortium now includes Santander Bank Polska as loan agent (€100 million), Helaba (€100 million), Bank Pekao as security agent (€89.5 million), PKO Bank Polski (€85.5 million), Erste Group Bank AG (€55 million), Berlin Hyp (€40 million), and Deutsche Hypo – NORD/LB Real Estate Finance (€40 million).
"A project of such scale and prestige requires the involvement of large and credible financial partners. Their trust and improved conditions on financing markets allowed us to increase the financing amount from €475 million to €510 million and enabled us to secure better financing terms. This transaction also underscores HB Reavis’s position in the region as a strong European player in the design, construction, and management of real estate," said Tomas Krajcir, CFO, HB Reavis Group.
"The participation of PKO Bank Polski in the financing consortium for Varso Place demonstrates our dedication to supporting premier commercial developments and confidence in their long-term prospects. Varso Place is one of the most modern and sustainable projects in Poland, which is evident in the strong interest from tenants in the office sector. By supporting such investments, we affirm the strategic direction of the real estate market, driven by innovation, sustainability, and excellence," said Agata Gola, Head of Property Finance at PKO Bank Polski.
"On behalf of the banks financing the project since 2018, we are pleased to welcome PKO Bank Polski and Erste Group Bank AG to the consortium," said Brendan Long, Head of Corporate Property Finance Department, Santander Bank Polska (Loan Agent).
"The addition of new banks confirms the stable position of Varso Place, which, despite changing market conditions, remains of interest to many financial institutions," said Dieter Lobnig, Head of the Investment Banking and Real Estate Finance Department, Bank Pekao S.A. (Security Agent).
"The favourable stance of financial institutions towards the Varso Place project reflects its high potential. -We offer space in the most sought-after location, combining innovative solutions aligned with sustainability principles with responsible, partnership-based property management. This has significantly contributed to the high level of commercialisation of the project, making Varso Place attractive not only to tenants but also to financial institutions," said Cezary Błaszczyk, Managing Director, HB Reavis Poland.
Varso Place comprises three buildings with 144,000 sqm of office and retail space in central Warsaw. The complex includes the 310-meter Varso Tower, designed by Foster + Partners and completed in 2022, which is the tallest building in the European Union. All buildings hold BREEAM Outstanding and WELL Gold certifications.
In the transaction, banks were advised by DLA Piper and Arcadis.
