July 03, 2008
SEGRO ANNOUNCES €60M SALE OF WARSAW OFFICE DEVELOPMENT
Acquired by Commerz Real
SEGRO plc, the leading provider of flexible business space in Europe, has agreed and completed the sale of Tulipan House, Warsaw, to Commerz Real for €59.7m.
The transaction reflects an initial yield of 5.9 per cent, and encompasses 17,898 sq m (192,652 sq ft) of “A” class suburban office space.
In December 2005, SEGRO acquired the site as part of its €20m acquisition of the Central European property development arm of the company Grontmij. Given the location of the site – in one of the prime Warsaw office areas – the development of a high quality office building represented the best opportunity to maximise value. Construction was completed in June 2008, by which time Tulipan House was already 80% leased – today it is 90% leased.
Located within the Mokotow district, the heart of the main decentralised office market in Warsaw, the office building is currently occupied by both international tenants and leading Polish companies including Ernst & Young; Aster; Huawei; Legrand; TP Emitel (Polish Telecom); Kodak; ACP Pharma; Guest Tek and A2.
Commerz Real acquired the building as part of their Hausinvest global fund.
Inès Reinmann, SEGRO’s Chief Operating Officer, Continental Europe, said:
“Following the development and letting successes for SEGRO in Central Europe over the last two to three years, this marks our first major recycling of capital in the region. This Warsaw site had always been seen as a trading opportunity; with the strength of the local investment market and the high level of lettings achieved before completion, our decision to crystalise the value which has been created was a natural one. This transaction again demonstrates the commitment and quality of the in-house expertise which SEGRO has in Central Europe.”
SEGRO was advised by Jones Lang Lasalle and Clifford Chance.
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For further information please contact |
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For SEGRO Investors/Analysts and Corporate Media Contacts |
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SEGRO |
+44 1753 21 3335
+44 20 7491 0177 |
Michael Waring |
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Maitland |
+44 20 7379 5151 |
Colin Browne/Liz Morley |
About SEGRO
SEGRO is the leading provider of Flexible Business Space in Europe. Headquartered in the UK, SEGRO is listed on the London Stock Exchange and on Euronext in Paris. The company is a UK Real Estate Investment Trust (“REIT”) with operations in ten countries (it completed the exit from its US business in August 2007), serving a diversified customer base of over 1,600 customers operating in a wide range of sectors, representing both small and large businesses, from start ups to global corporations. With property assets of £5.2 billion (including trading properties and development assets) and around 4.7 million sq m of business space, SEGRO has an annual rental income in excess of £249 million. www.segro.com
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