The assets of the real estate fund WOOD & Company will be newly expanded by the Concept Tower office building in Warsaw. The investment company WOOD & Company will acquire it from CPIPG. The building has 9 thousand sqm of office space and is fully leased. It is the second office building on the Polish market and the twelfth asset of the Office sub-fund, which focuses on office buildings in the main cities of the CEE region. It has long been one of the most successful funds in this segment in the Czech Republic and Slovakia, with an average annual return of 10.97% in the euro class since the inception of the Office sub-fund.
The Polish real estate market is one of the largest in Central and Eastern Europe, with impressive development dynamics and high liquidity. At the end of the third quarter of 2023, the supply of office space in Warsaw stood at 6.2 million sqm. “We are acquiring our second office building in the Polish capital as a result of our strategy and planned targets. One of the reasons for this acquisition is the great location and diversified mix of existing tenants. We bring the expected long-term appreciation to our investors,” said Martin Šmigura, Local Partner WOOD & Company.
Warsaw has become one of the most interesting investment opportunities among the V4 capitals in recent years, with a wide range of quality properties on offer. “We have a team of real estate experts in Warsaw, which we plan to expand. In addition to the completed acquisition of the Concept Tower, our team will be able to locate other interesting investment opportunities that will expand our product portfolio,” adds Jiří Hrbáček, Portfolio Manager and Representative of the Board of Directors of WOOD & Company Real Estate Fund.
The Concept Tower office building is located in the dynamically developing Wola district, close to the city centre and with excellent transport access to other Warsaw districts. There is a metro station in close proximity, as well as bus and tram stops, many shops, restaurants and services. The fifteen-storey building was built in 2012 and has 9 thousand square meters of rentable area. “Currently the building is fully occupied, with a very favourable mix of 25 tenants. The larger ones include the Polish-German Chamber of Commerce and BCD Travel,” says Jiří Hrbáček. The building is class A+ in the office building classification and is LEED Gold certified. The glazed façade ensures a constant supply of daylight and high standards of execution of the common areas for the necessary comfort.
The Concept Tower acquisition falls under the WOOD & Company Office sub-fund, which achieved an appreciation of 6.98% in the euro class last year. The latter is part of the investment company’s other real estate sub-funds, which cover areas such as retail, the Aupark shopping centre and the latest addition, logistics. The assets of the sub-fund, which is dedicated to offices, have so far amounted to €471 million. “We are adding more modern and high-quality premises to our office portfolio, which have interesting investment potential. The rental market remains active in the main cities, which is why we are not worried about a significant change in the occupancy of our premises. We are not only expanding our portfolio, but also regularly modernising and improving it, which is also positively perceived by our tenants. This strategy makes sense for us in the long term and last year’s valuations by two independent valuators prove the realistic valuation of our portfolio,” says Šmigura.
WOOD & Company real estate fund acquires property from CPIPG. Greenberg Traurig assisted on the sale side, while Colliers, Dentons and TPA represented the buy side.
