Developing Warsaw

Following its debut on the Warsaw Stock Exchange, Austrian developer Immoeast is enlarging its portfolio of Warsaw investments. The company has recently announced two large investments in the capital, worth a total of E63 (zł.238) million.

The first project, the 17-storey Rondo building, will offer a total of 20,000 sqm of office space in the center of the city. Construction work is scheduled to begin in the fall of this year and the office building, located on Rondo Jazdy Polskiej, will be completed in the summer of 2009 at a total cost of E36 (zł.136) million.

In line with its development strategy, Immoeast has also bought an office building on Al. Jerozolimskie. The company paid E27 (zł.102) million for the Passat office building, whose current tenants include Warbud and LG Electronics. The Passat building joins its neighbor, the Mistral office building, in Immoeast's portfolio, bringing the firm's total leasable office space on Al. Jerozolimskie to 34,500 sqm. When the currently under-construction Equator Office is finished, this figure will increase by a further 125,000 sqm.

"Rondo and Passat perfectly fit our investment portfolio in Warsaw and thanks to them we are able to strengthen our leading position on the capital's office-building market," says Karl Petrikovics, Immoeast's CEO.

The firm's investment strategy is one of the reasons why Credit Suisse recently upgraded Immoeast's stock rating from "neutral" to "outperform." With the addition of the Rondo and Passat buildings, the firm's portfolio in Poland includes 61 buildings, worth around E1.3 (zł.4.9) billion. In terms of the value of Immoeast's investments, Poland takes second place, after Romania.