POLAND Compelling reasons to invest in Polish offices

Could you tell us something about Arkéa REIM and the SCPI Transitions Europe fund it manages? What kind of assets do you invest in, and what is your long-term strategy?

Arkéa REIM is a French real estate investment management company created in 2021, specialised in the structuring, management and distribution of real estate funds. Despite its recent creation (in 2021), the company has experienced very strong growth and now manages over EUR 3.2 bln in real estate assets, diversified across nine European countries.

This success is largely driven by its flagship retail distribution fund, SCPI Transitions Europe. The fund’s strategy is to build a diversified, pan-European real estate portfolio, primarily focused on the eurozone. However, Transitions Europe remains opportunistic and is able to seize attractive investment opportunities beyond the eurozone when market conditions are compelling, as illustrated by our recent investments in Poland.

Today, Transitions Europe has more than EUR 1.2 bln in assets under management and holds a portfolio of 56 properties across seven European countries. Our long-term strategy is to combine diversification, strong income visibility, and selective acquisitions in markets offering attractive risk-return profiles. We target a long-term return of 6 pct but have been delivering more than 8 pct for the last 3 years.

SCPI Transitions Europe has just acquired the 14,000 sqm Brain Park A office building in Kraków. Why did you choose this particular property and how did the deal happen?

Brain Park A stood out as a compelling investment opportunity due to its prime location, high ESG standards and strong tenant profile. It is one of Kraków’s most successful office developments, fully leased to a diversified and high-quality tenant base including PepsiCo, EY, Medicover and others, which provides excellent income security.

The building benefits from efficient workspace design and incorporates energy-efficient solutions, partially powered by renewable energy sources. It also offers a wide range of amenities such as electric vehicle charging stations, bicycle facilities and wellness-oriented infrastructure. Its Well Health-Safety and WiredScore ‘Platinum’ certifications further confirm the highest standards in terms of user wellbeing, safety and digital connectivity. This is fully in line with our responsible investment strategy, as Transitions Europe is an ISR-labelled fund (French ESG label).

This transaction also reflects the strength of the network we have built over time through our numerous acquisitions across Europe. Thanks to this ecosystem of partners and advisors, we are able to access high-quality off-market or competitive opportunities on a regular basis. In this transaction, Transitions Europe was advised by Greenstone Asset Management, Dentons and Trebbi, while the seller was supported by Colliers and A&O Shearman.

Are you building a portfolio of office properties in Polish regional cities? What are your plans for Lastadia and Brain Park going forward?

The core investment strategy of Transitions Europe remains focused on the Eurozone. However, we closely monitor opportunities in dynamic European markets such as Poland, which benefits from strong economic growth and a rapidly developing office sector.

Polish regional cities, in particular, offer very attractive fundamentals, with some of the lowest vacancy rates in Europe. Kraków, as the country’s second-largest office market, continues to attract strong demand from international companies.

The acquisition of Brain Park A reflects a highly compelling opportunity in a supply-constrained market, offering excellent rental visibility thanks to its quality, location and tenant profile. Similarly, Lastadia fits into this logic of targeting well-positioned assets with strong occupancy and long-term potential.

Going forward, our objective is to continue to secure stable income streams while maintaining a selective and opportunistic approach to acquisitions in markets where fundamentals remain particularly strong. We are long-term investors and are investing in properties where we see potential capital gain for the next 10 to 20 years. We are not only focused on office buildings, but we have already had a look at various other opportunities in Poland, including retail, logistics and hotels. We think Poland is a very attractive market, and we hope to be able to close other deals in the near future.