Luxembourg fund snaps up office building in Krakow

Luxembourg-based fund FLE SICAV FIS, which focuses on investments in CEE and German-speaking countries, has acquired an office tower in Kraków, Poland from a multi-product real estate manager headquartered in Vienna.

Financial details were not disclosed.

The K1 office building, which is 76.47 metres high, is the tallest building in Kraków. Comprising 12,600 m2 of leasable space across its ground floor, 20 above-ground floors and two underground floors, the asset is BREEAM certified 'very good'.

Built in 1998, K1 was renovated in 2015.

According to JLL research, Polish office investment volumes exceeded the €2 bn mark for the second time in history last year, reaching €2.75 bn. The figure was over 20% higher than the previous record, achieved in 2006.

The most recent record was achieved through transactions not only in Warsaw, but also across other major cities, JLL said, with Kraków proving the top regional destination in terms of investor activity and volumes.

JLL suggests that investor sentiment in Kraków is also being boosted by tenant activity, which saw around 210,000 m2 of take-up in 2018.

During the sales process, JLL and EY advised the vendor, while TPA and Avison Young partnered with FLE. Legal advisers for the transaction were CMS for the vendor and White & Case for the buyer.

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