Eastnine acquires office property in Poznan

Eastnine has acquired the newly built office property Nowy Rynek E in Poznan, Poland, for EUR 79.3 million. The acquisition means that Eastnine’s rental income increases by EUR 5.95 million to EUR 42.4 million on an annual basis. After the acquisition, Eastnine is the largest owner of office properties in Poznan.

”With this acquisition we achieve a leading position in Poznan and become an important player in the city. We are adding a property with strong tenants, long leases and good opportunities to offer our customers flexible solutions in the short and long term”, says Eastnine’s CEO Kestutis Sasnauskas. ”Poland is an interesting market where we want to continue growing, with a focus on Warsaw.”
 

Image: The newly acquired Nowy Rynek E to the right. Nowy Rynek D, to the left, acquired in 2022.

The property

Nowy Rynek E, which comprises 28,800 sq.m. of lettable area and 234 garage spaces, was completed by the seller Skanska in 2023. The property is 89 per cent let to about ten tenants. Rent for the remaining area is guaranteed by the seller. Among the tenants are the management consulting firm McKinsey (34 per cent of total sq.m.), one of Poland’s largest banks Bank Pekao (7 per cent.) and Business Link (7 per cent), which offers flexible office space and coworking.

The average remaining lease term until maturity (WAULT) amounts to 5.7 years and the rents are indexed according to the EU27 HICP. The leases were signed after the pandemic, which means they are adapted to efficient office utilization with hybrid work. The property is sustainably certified with LEED Platinum and is expected to obtain WELL certification, both regarding new construction (core & shell). The acquired property Nowy Rynek E has been acquired and taken over today.

Location

Poznan is the fifth largest city in Poland, located midway between Warsaw and Berlin. The city has close to one million inhabitants in the metropolitan area and a vital business community as well as several major universities. The acquired property is located adjacent to the property Nowy Rynek D, which Eastnine acquired in May 2022. After the acquisition Eastnine owns nearly 68,000 sq.m. of lettable space in Poznan and is thereby the largest owner of office properties in the city. The location in central Poznan, close to the central station, tram, and the old town, is optimal.

Financing

The acquisition is financed by a green loan from Berlin Hyp, one of the leading German real estate banks, and with cash.

For more information contact:

Kestutis Sasnauskas, CEO, +46 8-505 97 700

Britt-Marie Nyman, CFO and deputy CEO, +46 70-224 29 35

Visit www.eastnine.com