M7 Real Estate, the pan European investor and asset manager, has acquired office property in Katowice, South East Poland on behalf of its M7 CEREF II Fund. The purchase price was not disclosed.
The first investment, which is located in a well-established office and commercial district in the city of Katowice, in South East Poland, is a multi-tenanted modern office building comprising 12,672 sq ft over ground and six upper floors and with 183 car parking spaces. It is let to eight tenants, reflecting a diverse income profile and strong covenants including Santander, Capgemini and SGS.
The office property in South East Poland provides a range of amenities such as a canteen, coffee bar, medical centre and a bank, whilst also being 200 metres away from Katowice’s largest shopping mall, Galeria 3 Stawy, and benefitting from strong transport links, including the adjacent A4 motorway providing direct access to the city centre and airport.
‘We are seeing a structural shift in the Central European office and logistics markets…’
”The major Central European economies have continued to grow strongly over recent years and this particular asset, while in line with our strategy of investing in offices with upside potential through active asset management, also benefits from a defensive income profile and diversified occupier line up. The acquisition is also reflective of our ability to execute transactions in more challenging situations,” said Katarzyna Parkot, Managing Director, Poland at M7.
“We are seeing a structural shift in the Central European office and logistics markets, particularly in expanding urban centres where vacancy rates have significantly reduced due to limited supply. This is leading to strong rental growth that we are seeking to access on behalf of our investors.”