Vienna-based CEE-focused CA Immo has signed and closed the sale of the Zagrebtower office building to Austrian property company S Immo at a 5% premium to H1 2020 book value.
The sale, believed to be worth some €50 mln, is part of CA Immo’s strategy to focus its portfolio on office buildings in Germany, Austria and core CEE capitals with local management teams.
Completed in 2007, Zagreb Tower is a 79-metre structure in an up-and-coming business district in the heart of the Croatian capital. The complex boasts a BREEAM Excellent rating and consists of an office tower with a total of 25,900 m² of rentable area on 22 floors and a 9-floor side wing offering a range of services and facilities for high tenant comfort. In addition, the building has an underground car park and around 500 outdoor parking spaces. The property generated €3.6 mln of annual gross rental income and was fully let (99%) as at 30 June 2020. Tenants include the Croatian Ministry of Economy and Sustainable Energy, the pharmaceuticals conglomerate Bayer, and the financial auditors Deloitte.
Keegan Viscius, Chief Investment Officer of CA Immo said: ‘In parallel with our portfolio growth in CA Immo's core markets, we are also continuing to pursue our non-core sales strategy. With the sale of the Zagrebtower, we are withdrawing from a small CEE market at a sound sales price.’
CA Immo started to speed up the process of focusing its strategic CEE portfolio on large-space, modern office properties in the big CEE capitals where it has local management teams in 2018. ‘Since then, we have completed the exit from Slovenia, Bulgaria, Russia, Ukraine as well as the exit from all secondary cities in Hungaria, Romania and Poland,’ added Viscius.
‘The acquisition of Zagrebtower is the logical continuation of our commitment in the capital of Croatia. The market is developing very well, and demand for state-of-the-art offices has risen briskly in recent years. Together with the office properties that are already part of the S Immo holdings, this complex will enhance our CEE portfolio and make a key contribution to earnings,’ noted Friedrich Wachernig, member of the S Immo’s Management Board.