Skanska to put €300m Generation Y office tower up for sale

Skanska, the Swedish-based developer and construction group, is preparing to sell its Generation Y office skyscraper in Warsaw, PropertyEU has learned.

The Stockholm-headquartered group – which for the past three years has topped PropertyEU’s annual ranking of office developers for space constructed – has been sounding out agents with a view to issuing the sales mandate. It is understood the instruction will likely be a joint one between two major international advisors, and that the price tag could be around €300 mln.

At 140 metres, Generation Y is the tallest of the three properties on Skanska's Generation Park development located in the Wola district of Warsaw and ranks as its highest-rise office building development, not only in Poland but in the entire Central & Eastern Europe (CEE) bloc. Construction is expected to be completed in the first quarter of this year.

In June 2020, Skanska signed a 10-year lease with insurance company PZU Group for 47,000 m2. The lease covers the office, retail, storage space, plus 325 parking spaces. The tenant is expected to take occupancy in the second quarter of 2022.

Skanska’s Generation Park complex totals a leasable area of around 87,000 m2 of office and retail space. Each building on the park is named with a X, Y, and Z sign, referring to the future generation of Warsaw residents.

The complex is expected to receive LEED Platinum, WELL, and Building without Barriers certifications.

Skanska has already sold the Generation Z building. In March 2020, Germany’s Deka Immobilien agreed to purchase the 19,000 m2 property for €98 mln. The building is leased to Vistra and Crido, among other tenants. The 19,000 m2 of total leasable area includes 110 parking spaces and 102 storage space for bikes.

Skanska remains the biggest office developer in Europe despite the Covid-19 pandemic. In 2020, its commercial development arm sold four office buildings for €265 mln, completed seven projects with a total volume of over 150,000 m2 and leased over 135,000 m2 in the CEE region.

Skanska declined to comment. The company is listed on the Nasdaq Stockholm stock exchange.