FLE enters Warsaw to buy Mokotów Plaza
M7 Real Estate has sold the Mokotów Plaza office building in Warsaw to Vienna-based FLE for an undisclosed amount.
Mokotów Plaza, which is located on ul. Postępu in the Służewiec business district of Warsaw, includes 15,600 m² gla. It’s an app. 80% leased on long-term agreements to tenants such as EnelMed, SDI Media, Securitas, BDO and Rockwool.
We are very happy with our latest acquisition in Poland. Mokotów Plaza guarantees strong and secure cash flow for more than six years and very high growth potential. After having already been present in several regional cities in Poland, we are happy to have finally entered the Warsaw market with an office investment and look forward to developing our portfolio there. Our appetite for Polish real estate also remains strong in 2022.
Alexander Klafsky, managing partner of FLE
London-based M7 Real Estate acquired Mokotów Plaza for its M7 Polish Active Fund (M7 POLAF) as part of a portfolio of five Polish office and industrial properties in 2019.
This divestiture illustrates our ability to execute our asset management strategy in a competitive location, while leveraging local expertise and relationships to deliver strong returns to investors. We saw an opportunity to take advantage of the ongoing urban transformation in this area of Warsaw during the acquisition of Mokotów Plaza, targeting new occupants to increase occupancy. After assessing the current investor demand for stabilized assets, it was concluded that the time was right for the Fund to divest itself of Mokotów Plaza, which would result in strong returns for our investors.
Katarzyna Parkot, general manager in Poland of M7
Avison Young represented M7 for this transaction and Allen&Overy provided legal advice. DLA Piper (legal) and TPA (tax advice) supported FLE, which is part of the LFPI group.