Briefs

EDE buys Ostrobramska 79

Israeli capital fund EDE has purchased a retail-office building at ul. Ostrobramska 79 in Warsaw from owner/developer Dentacon in a deal worth approximately EUR 12,450 mln. The anchor tenant of the 10,444-sqm scheme is Media Markt Polska with a store of 7,600 sqm. The transaction was co-financed by Immoconsult (a subsidiary of Oesterreichische Volksbanken). Property agency GVA Immoconsult Polska represented Dentacon in the transaction.

Land doesn't cut it:

Unsuccessful share launch for Skarbiec fund The launch of Poland's first domestic property fund ended in failure after TFI Skarbiec was unable to raise the required PLN 30 million from its share issue. The fund raised only PLN 20 million, said Lukasz Piasta of Feeria PR, which represents Skarbiec. According to Piasta there were two reasons why the fund was unsuccessful: the recession and unlucky timing. The fund had hoped to launch last year before a 20% tax on interest on money in bank accounts was introduced at the beginning of 2002. Piasta said that this meant investors were looking to invest their money elsewhere before the end of 2001. Approval by the securities commission held up the launch, however. Now Skarbiec says it has no plans to start a new fund in the future.

A lack of understanding

A leading Polish property investment consultant, however, said the failure was also partly due to the fact that the fund suffered from a lack of presentation skills, with language in the accompanying explanatory literature seeming to demonstrate a lack of understanding of the real estate market, and because no specific group of investors was targetted. Before the shares were launched Andrzej Dorosz, President of TFI Skarbiec, had said that the shares were aimed at a wide group of investors who wished to put their money into property but were unwilling or unable to do it independently. Another reason for the fund's failure is thought to be because Skarbiec planned to invest a large proportion of the money in land, arguing that EU accession would see land prices rise dramatically. Many analysts, however, felt that this wouldn't necessarily be the case as Poland will join with a number of other countries, unlike Spain and Ireland, who joined separately. The certificates were available from February 12 to March 15

 

Renaissance Tower sold for USD 55 mln

Austrian joint stock company CA Immobilien Anlagen AG (CA Immo AG) has purchased Apollo Rida's Renaissance Tower for a price of EUR 55 million, giving an initial yield of under 10.5%. The 18,000 sqm class A office building, located on ul. Skierniewicka just west of Warsaw's CBD, is fully leased. CA Immo AG has now invested 32% of their total capital in Central and Eastern Europe to date with investments in Warsaw, Budapest and Bratislava. According to Wolfhard Fromwald of CA Immo AG, the fund's objectives is to own 3-4 office or retail projects in Warsaw, Prague or Budapest and 2-3 in Bratislava.
The purchase is CA Immo AG's second investment in Warsaw. Last year the company bought German developer Mahler International's 7,000 sqm Wspólna 47/49 building for EUR 22 million. The fund, in which 90% of the shares are held by 3,500 private investors, was established in 1986 by Bank Austria.
Apollo Rida is a partnership between Apollo Real Estate Advisors of New York and Rida Development Corporation of Texas. Their other projects in Poland are Zeran Distribution Center, Zeran Distribution Center North and Ericsson Center (office). All are located in Warsaw.

Europa Capital Partners close to first investments in Poland

London-based Europa Capital Partners, a pan-European real estate investment fund which manages the c. EUR 1 billion Europa Fund, is negotiating the purchase of three properties in Poland. These would constitute their first investments in this country.
According to Noel Manns, Director of ECP, the fund is interested in office, retail and warehouse properties. ,We are look for developments which can be added to or improved", he said. ,We usually sell them on after 3 or 4 years". 70% of the Europa Fund is designated for investment in Western Europe and 30% in Central Europe (Poland, Czech Republic and Hungary). So far, 9 transactions - in Germany, Austria, Great Britain and Spain - have been concluded.

 

Kopernik sale confirmed

German investment fund Deutsche Grundbesitz-Investmentgesselschaft (DGI), a branch of Deutsche Bank Real Estate, has officially acquired 3 of the 5 buildings in the Kopernik office complex for a price of EUR 30 million. The fund has also secured pre-emption for the remaining 2 buildings of the scheme on Aleje Jerozolimskie. An initial yield of 10.5% is expected, the fund said. The contract with developer Liebrecht&wooD was signed after the Ministry of Interior Affairs and Administration approval was received. The first 5,700 sqm building has been wholly leased by ComputerLand. The 2nd building is due to be finished in April and will contain 2,850 sqm of office space and construction of the 3rd building, with 3,800 sqm, is expected to commence later in the year. The remaining 2 buildings are tentatively slated for construction in 2004/2005. Cushman & Wakefield Healey & Baker represented DGI.