Starwood Capital Adds Three Office Assets in Poland to Latest Distressed Opportunity Fund

Starwood Capital Group recently completed the acquisition of a prime office portfolio in Poland that will be added to the company’s Starwood Distressed Opportunity Fund IX.

Poland—Starwood Capital Group recently completed the acquisition of a prime office portfolio in Poland that will be added to the company’s Starwood Distressed Opportunity Fund IX. The buyer has paid an undisclosed amount to real estate developer Ghelamco for three different office assets. During the transaction, Starwood was advised by CBRE, Dentons and Arcadis, while financing was provided by Germany-based bank Helaba, who acted as the sole lender for the acquisition.

Two of the three office assets acquired by Starwood Capital Group are located in Warsaw, the largest city and capital of Poland, while the third building is located in the city of Katowice. The properties offer a total gross leasable area of around 840,000 square feet and 2,090 parking spaces. The oldest building in the portfolio was constructed in 2010, while the other two were completed just last year. The purchase of the class A properties continues the trend that the buyer began in 2013 when it acquired The Park, a class A office campus in the metro area of Prague, and one of the most coveted assets in Central and Eastern Europe.

In terms of occupancy, the three properties feature an average vacancy rate of approximately 4 percent. The top seven tenants at these properties include some blue-chip companies such as T-Mobile, Citibank, Allianz, Alior Bank, Tauron, PricewaterhouseCoopers and Zywiec, one the largest local beer brewers. All of the assets feature Building Research Establishment Environmental Assessment Methodology, or BREEAM, certifications, with T-Mobile Office Park in Warsaw being the first asset in Poland to receive Excellent-grade certification from the system.

Starwood Distressed Opportunity Fund IX was closed on by Starwood Capital in April of last year, totaling $4.2 billion of total capital commitments from around 100 investors from across the globe. Constructed to focus on strong cash returns during the investment period, SOF IX’s portfolio is devised to be diversified by both geography and product type. The bears many of the characteristics of Starwood’s SOF VIII, but with a more concentrated focus on the European real estate market.