European office investor Globalworth has signed a preliminary sale and purchase agreement with Cavatina Holdings SA to acquire two office developments in Poland, in Warsaw and Krakow, on their completion scheduled for the first quarter of 2020.
Chmielna 89 is a 14-storey office development, situated directly adjacent to the Company’s 34k sqm Warta Tower in central Warsaw, and offers 25k sqm across flexible floorplates with external terracing.
Tischnera Office is a flagship office development, located south of the historic centre of Krakow. The 34k sqm building is centred around a 1k sqm internal courtyard and is well-positioned for transport links to the historic centre.
The maximum transaction consideration for the two assets has been set at €185 million, with the final consideration to be determined on their leasing status at completion and after customary deductions. The annual contracted rent of the two assets is expected to be approximately €12 million.
“These exciting two additions to our portfolio are part of the investment pipeline under exclusivity that we announced alongside our recent €264 million equity raise. Chmielna 89 and Tischnera Office are both new landmark projects and will further strengthen our market-leading position in Poland’s two most dynamic cities,” said Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth.
“The execution of this transaction confirms Globalworth’s position as the most active office investor in the Polish market year to date with nearly €470 million of transactions completed or secured. These two strikingly designed assets are situated in prime locations and are very complementary to our existing portfolio in Warsaw and Krakow, further consolidating our position as the country’s leading office investor and landlord,” added Lukasz Duczkowski, Head of Investments – Globalworth Poland.
The preliminary sale and purchase agreement is subject to various conditions. The final sale and purchase agreement is expected to be executed in the first quarter of 2020, and a further update will be provided in due course.