M7 Real Estate has sold Mokotow Plaza, a Grade A office building in the Mokotow Business District of Warsaw, Poland, to FLE GmbH on behalf of the M7 Polish Active Fund.
Mokotow Plaza, which comprises c. 15,600 sq m of modern office space across five floors, is situated at 6 Postępu Street in an established non-central business hub on the outskirts of Warsaw.
M7 said active asset management activities have increased occupancy of the building to c.80%, extended the WALT to 6.5 years, and significantly improved the net operating income.
Katarzyna Parkot, Managing Director in Poland at M7, commented: “This disposal illustrates our ability to execute our asset management strategy in a competitive location, whilst leveraging local expertise and relationships in order to deliver strong returns for investors. We saw an opportunity to benefit from the urban transformation underway in this district of Warsaw when acquiring Mokotow Plaza, targeting new occupiers to increase the occupancy. After assessing the current investor demand for stabilised assets, it was concluded that now was the optimum time for the fund to dispose of Mokotow Plaza, resulting in strong returns for our investors.”
M7 was advised by Avison Young.