Starwood Grabs 840 KSF Office Portfolio in Poland

Starwood Capital Group continues its acquisition activity on behalf of a Starwood distressed opportunity fund.

T-MobileStarwood Capital Group’s acquisition activity on behalf of Starwood Distressed Opportunity Fund IX continues with the purchase of a three-property office portfolio in Poland. Starwood Capital acquired the 840,000-square-foot group of Class A assets from developer Ghelamco.

Starwood Capital is not blurting out specifics on the acquisition cost, but the company certainly had a helping hand. German bank Helaba, acting as sole underwriter and arranger, provided the investment firm with approximately $180.5 million in long-term financing for the purchase.

Two of the properties, T-Mobile Office Park and Łopuszańska Business Park, are located in Warsaw and made their debut in 2013. The third asset, Katowice Business Point opened in Katowice in 2010. Together the office destinations boast an average occupancy rate of 96 percent, and a premier tenant roster that includes the likes of Allianz Poland, Citibank, Pricewaterhouse Coopers and, of course, T-Mobile.

“We believe that these properties are well-positioned to benefit from the persistent strengthening of Poland, one of Europe’s fastest-growing economies,” Keegan Viscius, vice president at Starwood Capital, stated in a press release. He highlighted a list of drivers in the office market. “Improving business confidence and easing credit conditions are likely to support an increase in investment in Poland, and labor market conditions, already strong, should also continue to improve,” Viscius said. “Domestic companies are profiting from these positive economic trends, while multinational corporations are attracted by the country’s highly skilled workforce, central European location, modern infrastructure, stable political environment and vibrant culture. All of these factors should spur demand for modern, high-quality office space.”

CBRE Group Inc. represented Starwood Capital in the transaction, while Jones Lang LaSalle and Hogan Lovells stood in for Ghelamco.

Starwood Capital’s acquisition activity on behalf of SOF IX was strong before the global opportunistic real estate fund closed in April 2013, and it is only going to continue in that vein, as the money is available. SOF IX closed with $4.2 billion of total capital commitments, having reeled in 100 investors from around the world.