Skanska sells office portfolio in two Polish cities for EUR 214 M

Press release 9/5/2019 9:30 AM CET

Skanska sells office portfolio in exceptional locations with high economic and environmental sustainable elements in Wroclaw and Krakow. The Nowy Targ in Wroclaw and High5ive in Krakow have attracted both excellent tenants and investors. These two projects have just been sold to real estate funds managed by Credit Suisse Asset Management Global Real Estate. This is the second transaction between both parties.

Nowy Targ, Wroclaw, Skanska

The Nowy Targ project in Wroclaw, along with the third and fourth buildings of the High5ive office complex in Krakow, were the subject of a recent transaction concluded between Skanska and Credit Suisse Asset Management Global Real Estate. The total leasable area of both developments comprises of approx. 60,300 square meters; 22,800 square meters in Nowy Targ and 37,500 square meters in High5ive.

– Investors such as Credit Suisse Asset Management recognize the economic development of our country and the potential of regional cities. Nowy Targ and High5ive are in the best locations in Wroclaw and Krakow and have attracted international companies that plan to develop their business in Skanska buildings. The three buildings transaction confirms that Poland offers the highest quality investment assets also outside Warsaw - says Arkadiusz Rudzki, Managing Director at Skanska office unit in Poland.

The business services sector is one of the main drivers for office market development in Poland. Krakow and Wroclaw are leading cities and attract companies and tenants primarily from the BPO/SSC/IT sectors. According to a recent ABSL report, approx. 307,000 people work in business services centers in Poland, with this number being expected to rise by almost another 30,000 by the first quarter of 2020.

– Krakow and Wroclaw are becoming mature markets for investors on the real estate map of Europe. Both cities enjoy high interest of Polish and international employers. Nowy Targ in Wroclaw and High5ive complex in Krakow are in exceptional locations which will facilitate access for employees. Both office projects are characterized by the highest level of architecture, appropriate to the location - emphasizes Mariusz Krzak, Regional Director at Skanska’s office unit in Poland.

– This portfolio of three prestigious office buildings in Wroclaw and Krakow is characterized by sustainable, high-quality construction and are in very attractive locations – says Francisca Fariña Fischer, Head of Real Estate International at Credit Suisse Asset Management. –Furthermore, Poland is a dynamic and liquid real estate market – she explains.

Nowy Targ, which has just been completed, is a seven-story development in the heart of Wroclaw’s city center. This A-class office building has a total gross leasable area of 22,800 square meters and offers 195 underground parking places. Its office space is already fully leased. Tenants include companies such as Tillberg Design of Sweden and SpyroSoft S.A. The last ground floor premises of the building are in the process of commercialization. The property is a 5-minute walk from the city’s historical Town Hall and has access to numerous public transportation options. Nowy Targ is aiming for LEED Platinum and has already received Green Building certification. It is also expected to obtain a “Building without Barriers” certificate, thereby verifying that the building is adapted to the needs of people with disabilities as well as those visiting with small children.

The second subject of the portfolio transaction between Skanska and Credit Suisse Asset Management Global Real Estate includes the third and fourth buildings of the High5ive office complex in Krakow. The buildings’ completion dates are scheduled for the fourth quarter of 2019 and first quarter of 2020 respectively. This is one of the city’s most successful office developments, located in direct proximity of Krakow’s main railway station and the Galeria Krakowska shopping center. The divested segment of the High5ive office complex provides a total leasable area of 37,500 square meters and 414 parking places. The two buildings are highly efficient and technically and practically independent to provide additional flexibility. 1,900 square meters of so-called "green concrete", which cleans the air from harmful substances such as car exhaust fumes, is to be built around them. High5ive has been chosen by international high covenant tenants such as Amway Business Centre, Ocado Technology, Universal-Investment and Schibsted Tech. Both buildings are aiming for LEED Platinum and “Building without Barriers” certificates.

Last updated: 8/22/2017