Immofinanz swoops on Warsaw Spire in €386m deal

Vienna and Warsaw-listed property group Immofinanz has acquired the Warsaw Spire Tower in the Polish capital from Ghelamco Group and Madison International Realty for €386 mln.

The 220 metre-high office building comprises around 71,600 m2 of rental space, with some 65,000 m2 of offices over 49 floors and the remainder used mostly for retail purposes. It was completed by local developer Ghelamco in 2016, with Madison taking a 50% stake two years later in a deal valuing the tower at €350 mln. 

'This transaction represents a strong growth step for Immofinanz,' said CEO Oliver Schumy.

'In accordance with our strategy, we first concentrated our portfolio and will now significantly strengthen our standing investments and sustainable earning power with this top property,' Schumy added. 'Warsaw is one of the most promising office markets in our core region due to its dynamic development and favourable economic indicators.'

Immofinanz said that it completed the deal through the purchase of the respective property holding companies. The fully-let asset, which is Warsaw's highest commercial building, has an expected annual rental income of €19.6 mln. Tenants include Goldman Sachs, Samsung, JLL and Mastercard, with an average weighted unexpired lease term of 4.6 years.

The deal is subject to approval from the Polish anti-trust authorities and will be financed with both equity and debt.

Immofinanz said that its Polish portfolio of 26 assets had a book value of €760 mln, as of March 31, representing 17.2% of its total portfolio.


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