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Purchase of a complex of real properties at Nowogrodzka and Św. Barbary Streets in Warsaw

CATEGORY
Investment Deal of the Year, CEE
Nowogrodzka complex is located 300 m from the Palace of Culture and Science. The investment includes six buildings with a total usable area of approximately 50 thousand square meters, developed on a plot with area of one hectare. In the very heart of Warsaw the investor will create a multifunctional complex, including a residential and commercial part, offices, but also a hotel. This will be a unique part of the city centre with high class pre-war architecture combined with ultramodern design. The buildings include, among others, a 4-storey house build in 1933, a monumental, historical 8-storey building of the Post and Telegraph built in 1932 and a 22-storey technical building in which, since 1992 the strategic infrastructure of Orange is located. The property will be restored in stages. Orange Polska will lease back the portion of the Complex until 2026, in order to allow sufficient time for migration of the operator's network equipment.
Name of the deal
Purchase of a complex of real properties at Nowogrodzka and Św. Barbary Streets in Warsaw
The date of closing the deal
29 August 2019
Value of the transaction (in EUR)
81 million EUR
Yield
4,8%
Seller, plus brief information about the company
Orange Polska. Orange Polska is in process of selling over 600 real estate properties, both commercial and residential, located in different regions of Poland. The Company reallocates capital from real estate into its core telecom business areas.
Consultancy which advised Seller
Orange internal departments
Purchaser, plus brief information about the company
Zeitgeist Asset Management is a real estate developer and asset manager for private and institutional investors in Germany and Central Eastern Europe. Zeitgeist acquires, develops, finances, manages and exits properties for investors. Zeitgeist operates in various segments of the real property market, with a particular emphasis on the apartments for rent. The company's expansion includes, in addition to the Czech Republic and Poland, also Hungary and Germany. Since its establishment in 2014, the company has been growing dynamically, currently managing assets worth over EUR 515 million and an area of almost 463 thousand square meters of the plots and 338.9 thousand square meters of the leasable area. A great majority of properties acquired by Zeitgeist are characterised by a very favourable location or an exceptional historical value. About 75% of the projects constitute the residential investments, the other include the office, commercial and industrial projects.
Consultancy which advised Purchaser
In legal terms the transaction was conducted by the Baker McKenzie law firm, represented by Joanna Wojnarowska and Weronika Roesler. The technical issues related to the purchase were consulted with the DIL Baumanagement.
Financing institution
financing in preparation
Current occupancy level
100%
Please say why this deal should be considered for the award
The purchase is exceptional because of the size of real estate in the amazing premium location in heart of Warsaw and certainly because of the value of the transaction. Moreover, the complex includes the authentic Post and Telegraph building from 1932, under strict heritage protection, very valuable for the city of Warsaw. Also, the complexity of the deal was significant and worth mentioning because of the Seller's strategic telecommunication infrastructure located in the complex. With this project Zeitgeist will further fill the niche that foreign investors have been afraid of for years to enter - purchasing and increasing a value of the historic properties through their renovation and extension. The company is distinguished by an important element, which is a long-term approach to investment. The completed projects are not intended for sale, but for rent. This means quality and responsibility. Zeitgeist is also a pioneer constituting the institutional rental market in Poland.