News

Pricoa makes cental Europe debut

News

Rachel Frampton

02 December 1999

The deal is Warsaw’s biggest single office investment ever and reflects a yield of some 15%

Pricoa, the UK-based fund management arm of the Prudential Insurance Co of America, has made its first central European investment.

In Warsaw’s biggest office deal, it has paid £40m for Skanska’s The Atrium Business Centre in the Polish capital.

The initial yield on the 11,000m2 property is around 15%. Tenants include Reuters, accountants Arthur Andersen, Commercial Union, Erste Bank and Restaurant 99.

The Atrium project, of which the Business Centre is the first phase, is located in Janapawla in the heart of the city’s commercial district. Skanska, which sold the property alongside its co-investors, two Warsaw local authorities, has also developed the Atrium Tower and Atrium Plaza at the site. The last phase, Atrium Centrum, is under construction.

Robin Gilchrist, managing director of investment at Pricoa, said: “This is a high-quality building with good covenants and it matches the investment profile we demand of buildings throughout the UK and Western Europe. We look forward to making further purchases in Poland and central Europe.”

Pricoa did not want to disclose which fund bought The Atrium but it is known to be looking at opportunities in central Europe for its $500m EuroInvest fund.

Gleeds Development Services acted for the vendors.

Meanwhile, in Warsaw’s out-of-town office market, UK-based Chelverton Properties, is finalising negotiations to sell buildings C and D at its Wisniowy Business Park. The buildings total 5,600m2 each and one is let to Vereinsbank and the other mainly to Xerox and IBM with one floor still to be let.

Chelverton director Jonathan Tinker would not give any details but said “We are hoping to set a new benchmark for yields in Poland with this deal.” In March 1998 UK insurance company Commercial Union made Poland’s first investment acquisition. It paid $14.7m for a 5,600m2 office building at Wisniowy Business Park reflecting a 13% yield.

Chelverton Properties is 50% owned by Australian company Lend Lease Property.

The deal is Warsaw’s biggest single office investment ever and reflects a yield of some 15% Pricoa, the UK-based fund management arm of the Prudential Insurance Co of America, has made its first central European investment. In Warsaw’s biggest office deal, it has paid £40m for Skanska’s The Atrium Business Centre in the Polish capital. The initial yield on the 11,000m2 property is around 15%. Tenants include Reuters, accountants Arthur Andersen, Commercial Union, Erste Bank and Restaurant 99. The Atrium project, of which the Business Centre is the first phase, is located in Janapawla in the heart of the city’s commercial district. Skanska, which sold the property alongside its co-investors, two Warsaw local authorities, has also developed the Atrium Tower and Atrium Plaza at the site. The last phase, Atrium Centrum, is under construction. Robin Gilchrist, managing director of investment at Pricoa, said: “This is a high-quality building with good covenants and it matches the investment profile we demand of buildings throughout the UK and Western Europe. We look forward to making further purchases in Poland and central Europe.” Pricoa did not want to disclose which fund bought The Atrium but it is known to be looking at opportunities in central Europe for its $500m EuroInvest fund. Gleeds Development Services acted for the vendors. Meanwhile, in Warsaw’s out-of-town office market, UK-based Chelverton Properties, is finalising negotiations to sell buildings C and D at its Wisniowy Business Park. The buildings total 5,600m2 each and one is let to Vereinsbank and the other mainly to Xerox and IBM with one floor still to be let. Chelverton director Jonathan Tinker would not give any details but said “We are hoping to set a new benchmark for yields in Poland with this deal.” In March 1998 UK insurance company Commercial Union made Poland’s first investment acquisition. It paid $14.7m for a 5,600m2 office building at Wisniowy Business Park reflecting a 13% yield. Chelverton Properties is 50% owned by Australian company Lend Lease Property.