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West Gate, A4 Business Park and Tryton (EPP office sub-portfolio)

CATEGORY
Investment Deal of the Year, CEE
The acquisition of the EPP office sub-portfolio consisted in acquiring three landmark projects: West Gate, A4 Business Park and Tryton Business House. West Gate is a modern office building with 16,600 sqm GLA, situated in the North-Western part of Wrocław, with a very good access to the city bypass and the center. The property consists of an office building with an L-shaped layout and a typical floor plate of approximately 2,700 sqm. Its minimalist form with a graphite, stone facade, is supplemented with large, glass spaces that make offices well-lighted. The property has a 2-storey underground parking with a capacity for 320 cars. This asset is adjacent to West Link, which further extended the office area. The property offers standard A-class offices and has a BREEAM certificate at the Excellent level. A4 Business Park is a complex of three modern office buildings with 30,600 sqm GLA, located in Katowice, naturally integrated into the existing urban fabric, with a unique location inside a park. The stone façade and carefully finished details gave the buildings an elegant, timeless character. The whole complex consists of two 10-story buildings and one 7-story building and additionally incorporates a ten-story parking building, with a capacity of over 600 places. The complex offers class A office space and has a BREEAM Interim certificate at the Very Good level. Tryton Business House is a 24,000 sqm GLA office building located in one of the most characteristic places in Gdańsk, at the junction of Jana z Kolna and Wały Piastowskie streets, in the vicinity of the inner-city center. Tryton Business House consists of an eleven-story tower and two lower, six-story buildings. They are connected by walkways, which make it possible to move around the establishment without leaving the building. The property offers standard A-class offices and has a BREEAM certificate at the Excellent level.
Name of the deal
West Gate, A4 Business Park and Tryton (EPP office sub-portfolio)
The date of closing the deal
December 22nd 2017
Value of the transaction (in EUR)
160 mln euro
Yield
7.4%
Seller, plus brief information about the company
EPP (former Echo Polska Properties) EPP was created on base of Polish cash-generating commercial projects built and held by Echo Investment, listed on Warsaw Stock Exchange (WSE) developer company controlled by consortium of the most active real estate investor in Central and Eastern Europe - Griffin Real Estate together with Oaktree and PIMCO funds. EPP is a real estate investment company that follows the REIT formula regarding investment strategy and dividend policy, investing in retail properties throughout Poland with primary listings on the Main Board of the JSE and the Euro MTF market of the Luxembourg Stock Exchange. Current portfolio includes 6 office, 19 retail projects and two retail development sites in Warsaw.
Consultancy which advised Seller
Weil (legal)
Purchaser, plus brief information about the company
Globalworth - a listed real estate company active in the CEE, quoted on the AIM-segment of the London Stock Exchange. It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland, where the Company has a majority shareholding in Globalworth Poland, a pure-play Polish real estate platform listed on the Warsaw Stock Exchange. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by over 170 professionals across Romania and Poland, the combined value of its portfolio is in excess of €2 billion, as at 30 June 2018. Over 90% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of some 510 national and multinational corporates.
Consultancy which advised Purchaser
Dentons (legal), cmT (tech), EY (fin-tax)
Financing institution
Globalworth – self financing
Current occupancy level
100%
Please say why this deal should be considered for the award
All three properties, with circa 71,000 sqm of GLA are leased to renowned tenants such as Intel, IBM, PKP Cargo and Nokia, and generate a net operating income of circa €11.7 million on a stabilized basis. What’s more, this acquisition strengthened even more Globalworth’s in Poland and the CEE region and significantly enlarged its portfolio to nearly €700 million at the time. It was also an important step in company’s mission to become the leading institutional office investor in Poland. This happened in June 2018 when Globalworth’s portfolio grew to 290,000 sqm of owned office space on the Polish market, and was valued at 900 million EUR at the time.