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Implementation of the CPIPG Strategy – acquisition of nine high-quality office buildings located in Warsaw that meet environmental and location standards, with the possibility of their further development and value enhancement.

CATEGORY
Investment Deal of the Year, CEE
In the autumn of 2019, CPIPG announced an investment strategy for Poland focused on the acquisition of high-quality office buildings located in Warsaw that meet environmental and location standards, with the possibility of their further development and value enhancement. Till the end of Q3 of 2020,9 office buildings with total are 245,000 sqm had been purchased. The portfolio includes office buildings located in the very center of Warsaw - Warsaw Financial Center, Moniuszki 1A, Chałubińskiego 8 (purchase of 50.3% of shares), in the corridor of Aleje Jerozolimskie - Eurocentrum Office Complex and Equator I, Equator II and Equator IV, as well as office buildings on the border of Śródmieście and Wola - Green Corner A and Concept Tower. All the purchased office buildings had ecological certificates or certification took place during the ownership management by CPIPG. Two largest transactions ¬– the acquisitions of the Warsaw Financial Center and Eurocentrum Office Complex, had bed executed in three months (total GLA of 135,000 sqm). The acquisition process was carried out in the following order and the following office buildings were purchased: 1. Eurocentrum Office Complex – acquisition: November 2019. 2. Equator IV – acquisition: November 2019. 3. Warsaw Financial Center – acquisition: December 2019. 4. Equator II – acquisition: January 2020. 5. Green Corner A – acquisition: January 2020. 6. Equator I – acquisition: March 2020. 7. Moniuszki 1A – acquisition: March 2020. 8. Chałubińskiego 8 – acquisition: April 2020. CPIPG purchased 50.3% of shares in the building. 9. Concept Tower – acquisition: August 2020.
Name of the deal
Implementation of the CPIPG Strategy – acquisition of nine high-quality office buildings located in Warsaw that meet environmental and location standards, with the possibility of their further development and value enhancement.
The date of closing the deal
Closing of the last transaction from the portfolio - August 27th, 2020
Value of the transaction (in EUR)
800 mln EUR total
Yield
We do not disclose such information
Seller, plus brief information about the company
1. Eurocentrum Office Complex – Capital Park 2. Equator IV – Karimpol 3. Warsaw Financial Center – Allianz Real Estate / Curzon Capital Partners III, investment fund, managed by Tristan Capital Partners 4. Equator II – Karimpol 5. Green Corner A – DWS 6. Equator I – Immofinanz 7. Moniuszki 1A – Catalyst Capital 8. Chałubińskiego 8 – First Property Group 9. Concept Tower – Concept Development
Consultancy which advised Seller
No data
Purchaser, plus brief information about the company
CPI Property Group (CPIPG) is a leading commercial and hotel real estate company in Central and Eastern Europe and Germany, focusing its activities on long-term real estate investment and leasing. It belongs to a small group of companies in the region with an investment rating. Moody's rated Baa2 and Standard&Poor's: BBB. CPIPG is the largest owner of retail space in the Czech Republic and office space in Berlin. It is headquartered in Luxembourg and its shares are listed on the Frankfurt S.E. The Group operates in the office, retail, residential and hotel real estate sector with total assets of over 9.1 billion euros. In Poland CPIPG has been operating since 2013. It owns and actively manages 24 properties in the office, retail and hotel sectors. The company's investments are located in Warsaw, Elbląg, Zamość, Tarnów, Radom and Zgorzelec. The Company plans to further engage in the Polish market by purchasing and investing in selected office properties in the best locations in Warsaw.
Consultancy which advised Purchaser
Legal advice for all investments: Dentons Poland. Commercial Consultancy: for 7 acquisitions: Equator I, II, IV, Eurocentrum Office Complex, Green Corner A, Moniuszki 1A, Concept Tower – JLL. For Warsaw Financial Center and Chałubinskiego 8 – CBRE. Financial / Tax Advisory: PwC, for Green Corner A acquisition– Crido. Technical Advisory: Equator II, Equator IV, Warsaw Financial Center, Moniuszki 1A, Chałubińskiego 8 – Gleeds. Equator I, Green Corner A, Eurocentrum Office Complex, Concept Tower – Hill
Financing institution
We do not disclose such information
Current occupancy level
Average: 97%
Please say why this deal should be considered for the award
Within a year from the announcement of the strategy for Poland by CPIPG, 9 transactions on the Warsaw office property market had been completed, increasing the size of its investment portfolio by 245K sqm to a total of 314K sqm. With these transactions, CPIPG Polska has become a leader on the Warsaw office property market in terms of space. CPIPG owns in total 393,000 sqm of office, retail and hotel space in Poland. All of the company’s acquisitions are high-quality, green office buildings in prime locations in Warsaw, with good growth outlooks. To achieve this goal a proprietary Property Management model has been implemented, which is based on the highest sustainability standards both as regards buildings’ modernization and human capital management. As part of the implementation of the ownership model of property management, innovative programs are created and implemented, inc. the vision of the offices of the future, the safety as well as quality of work and relations with tenants.