A tall order

London & Regional Properties (L&R), one the largest private property companies in Europe, acquired the structure for over EUR 260 (zł.1,031) million, making the sale the biggest single-asset transaction in Central Europe.

The acquisition is L&R's first foray in the Central European market. The company, however, has much wider plans. "We want to invest EUR 1 billion in new assets in Poland in the next 12 months," Max J. Fowles-Pazdro from L&R told WBJ. The company is interested in projects in office, retail, hotels, warehouses, and infrastructure all over Poland.

The 192-meter-high 40-storey Rondo 1 had already had a long story of being sold before it was finished in March this year. The first time was in 2004 when Hochtief Project Development Polska sold it to a German fund for some EUR 200 million. Then the building was acquired by Hanover Leasing, which finally sold it to L&R. "We are not looking to sell it," assures Fowles-Pazdro, saying that the company wants to reach a lease level of 90 percent (currently about 46 percent).

The transaction was financed by Aareal Bank AG. L&R was represented by the Warsaw, London, and Berlin offices of Salans, whereas Hannover Leasing was assisted by the Warsaw and Munich offices by Noerr Stiefenhofer Lutz.