Warsaw Trade Tower teetering on the brink of sale

Apollo Rida, a Poland-based joint venture of U.S. developer Rida Development Corp. and the U.S. property fund Apollo Real Estate Fund III, is one of four potential buyers for the Warsaw Trade Tower (WTT) office building on ulica Towarowa. "We are a step away from taking (the building) over, said David Mitzner, president of Apollo Rida, adding that he would have more details on the transaction later this week. According to a source close to the deal, BRE Bank is selling the 42-floor WTT because its owner, developer Dae-Pol, owned by Korea's Daewoo and Poland's Pol-mot, is unable to pay back an estimated $80 million-$90 million it still owes for the building. None of the bank's officials was available for comment at press time. The source, who asked not to be named, said the asking price for the building is about $100 million-$120 million. The source added that Dae-Pol had been trying to sell the tower for a long time. "They've been trying to sell it and walk away with clear hands," he said.

The skyscraper, finished in early 2000, has 34,000 square meters of net rentable class-A office space and 4,700 square meters of retail space. So far, the building's only anchor tenant is international consultancy KMPG, which occupies about 6,000 square meters. Apollo Rida has been angling to acquire WTT since 1999, but according to the source, three other parties are also interested in buying the building. The tower was developed through an $80 million loan from BRE Bank. Apollo Rida is prepared to take over the building's debts, the source said.