Akron takes Warsaw Trade Tower

The Warsaw Trade Tower (WTT) has been sold by Apollo Rida to the Austrian Akron Group. This is one of the biggest single asset office deals in 2006.

The E150 (zł.570) million transaction took place after a European-wide tender. WTT will become a main plank of Akron's new Central and Eastern European property fund, which invests in office, logistics and retail properties in Poland, Hungary, Ukraine and Russia.

WTT is located on the junction of ul. Towarowa and Chłodna. It has 42 floors, and is 208 meters high, making it Warsaw's second-tallest building after the Palace of Science and Culture. It takes it architectural inspiration from the American designs of the 1920s and 1930s, particularly the Chicago School of Architecture.

WTT was initially built by car-manufacturer Daewoo , but was sold after the company ran into financial difficulties. Initially, most of the office space remained empty, but after Apollo Rida took the building over in 2002 it dramatically improved the situation and managed to cut the vacancy level to 30 percent by April 2006. It planned to have 95 percent occupancy by the end of this year. Apollo Rida paid more than $100 million for WTT in 2002 (which was roughly zł.399 million), which at the time was thought to be the largest-ever purchase transaction in the Polish real-estate market.

WTT has a rentable space of some 45,000 sqm and now has a number of high-profile long-term tenants, including KPMG, MSD, AXA, American Express, Winterthur and PKN Orlen.

The advisors of Akron group on this transaction were Colliers, Clifford Chance and EC Harris. Senior financing was provided by Hypo Real Estate Bank. On behalf of Apollo Rida, the tender process was managed by Cushman & Wakefield.

Stefan Ausch, a member of the executive board of Akron and CEO of the CEE fund, said: "As the real-estate prices in Poland, Hungary and the Czech Republic have already reached Central European levels, Akron group is focusing pointedly on the best properties. Apollo-Rida has done a tremendous job in turning this landmark building into an economic success."

Apollo Rida will still be involved with the building. "WTT is a landmark asset and we are very happy to continue as both an equity owner and a property manager," said Ira Mitzner of Apollo-Rida.