Hines, the international real estate firm, and Europejskie Centrum Inwestycyjne (ECI), a holding company, have announced today that Hines Global REIT, Inc. has acquired from ECI the New City office complex in Warsaw, in Poland. ING Bank Slaski SA and ING Bank NV have provided financing to the Global REIT for the acquisition. Cushman & Wakefield represented the seller in the transaction.
The New City office complex contains two best-in-class office buildings, New City and NC2, located on 15 Marynarska Street at the center of Mokotow, Warsaw’s largest office district. The property is situated at the intersection of four major arterial routes, with excellent visibility and unrivalled transport links with the city center and Warsaw’s Chopin International Airport.
The complex is fully leased to 51 tenants including such established and internationally recognized companies as Gruner+Jahr, Novartis, Samsung and Eniro.
The total rentable area of the New City office complex is approximately 44,000 sq m. The 11-story New City building contains 40,000 sq m and was completed in 2010. The four-story 4,000 sq m NC2 building has just been completed. The connected properties offer retail space on the ground floor and 1,291 parking spaces in 3 levels.
The original concept of the project was to create a “New City within the city” – an office, services and retail complex, providing a quality working and living environment. Its impressive size and modern exterior design fit well with the surrounding office developments, creating a dominant landmark in the district.
“This represents the second acquisition for the Hines Global REIT in Poland. The strength of the New City tenants and the quality of the asset make it a good fit for our portfolio,” said Sherri Schugart, president and CEO of Hines Global REIT.
Mietek Godzisz, senior managing director of Hines in Poland said, “We are pleased that the Hines Global REIT recognizes Poland as a strong and growing market. Owing to its strong tenant roster, superior location within the Mokotow submarket and high-quality design, New City should complement the portfolio well.”
Jerzy Leskowicz, President of ECI Group, said: “After the extensive process of selecting a purchaser for New City and NC2, in Hines we have found a highly reputable and capable investor to complete this transaction with.”
In addition to the Hines Global REIT, Hines is currently active in Poland with the Hines Russia and Poland Fund, an opportunistic vehicle raised in 2012 with institutional investor capital, and is also now targeting lower risk profile, income-producing assets with other partnerships.