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The sale of 50% stake in Warsaw Spire tower (building A) by Ghelamco Poland to Madison International Real Estate Realty

CATEGORY
Investment Deal of the Year, CEE
Warsaw Spire is the largest and tallest office complex in Poland, and a landmark of the dynamically developing capital city. It is globally recognized and has won numerous awards, including the world’s Best Office & Business Development at the 2017 MIPM Awards. The complex comprises three buildings – the 220 m high skyscraper and two 55 m high buildings on the sides, which offer in total 109 000 sqm of top quality office space. The subject of the transaction was 50% stake in the tower building (A), which has 64 500 sqm top quality office space on 49 floors. Warsaw Spire was opened in May 2016. Less than a year after completion of the construction, 95% of the office space in the building was leased, what confirms the spectacular commercial success of the investment. Today, Warsaw Spire is a workplace for over 8,000 employees. Warsaw Spire is located in the new business district of the capital at Rondo Daszyńskiego. It is the most dynamically growing part of the city, with strong private and public transport connections, including metro line, as well as multiple tram and bus routes. The great advantage of the building is its location on Plac Europejski, which is the best-developed public space in this part of the city, very popular among the residents of Warsaw.
Name of the deal
The sale of 50% stake in Warsaw Spire tower (building A) by Ghelamco Poland to Madison International Real Estate Realty
The date of closing the deal
April 2018
Value of the transaction (in EUR)
approx. EUR 350 million
Yield
-
Seller, plus brief information about the company
Ghelamco Poland is the leader of the commercial property market in Poland. For the past 27 years the company has delivered over 1,100,000 sqm of best-in-class office, residential, commercial, and warehouse space. The developer’s flagship investment is the Warsaw Spire with Plac Europejski, awarded a title of the best office building in the world in a prestigious competition MIPIM Awards 2017.
The company has continued to implement pioneering concepts of technologically advanced buildings which set new trends on the property market in Poland. It is also the only developer in the country with a broader perspective on sustainable construction. As the first company in the industry, it certified office buildings in the BREEAM system.
Ghelamco actively contributes to shaping the urban space. The company implements projects aimed at revitalizing entire districts by creating valuable city space. Ghelamco has won a lot of prizes, including seventeen “Developer of the Year” awards.
Consultancy which advised Seller
Dentons, JLL and CBRE
Purchaser, plus brief information about the company
Madison International Real Estate Realty is a leading liquidity provider to real estate investors worldwide. The company provides joint venture and preferred equity capital for real estate owners and investors that are looking to de-lever their properties, seek an exit strategy etc. The firm provides equity for recapitalizations, partner buyouts and capital infusions. It also acquires joint venture, limited partner and co-investment interests as principals. Madison invests only in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. The company has offices in New York, London and Frankfurt, Germany, where the firm operates under the name of Madison International Realty GmbH.
As a result of the purchase of 50% stake in Warsaw Spire building A, Madison International Real Estate Realty became an equal owner of the iconic Warsaw tower.
Consultancy which advised Purchaser
Greenberg Traurig
Financing institution
-
Current occupancy level
Over 95% (with a strong line up of international tenants including Samsung, JLL, Mastercard, Shire, The Heart Warsaw, DaftCode, Panattoni and Ghelamco)
Please say why this deal should be considered for the award
The sale of 50% stake in Warsaw Spire tower (building A) by Ghelamco was one of the largest transaction on the Polish office real estate market in recent history. Before this historical transaction, in September 2017, Ghelamco sold Building B of the Warsaw Spire complex for approximately EUR 100 million. The new owner of the property is CA Immo, which manages real estate in Germany, Austria and Eastern Europe. One year later, at the beginning of October 2018, CA Immo purchased Building C from Ghelamco, thus becoming the owner of the second building in the Warsaw Spire complex. Transaction value was nearly EUR 100 million.