SCPI Transitions Europe managed by Arkéa Real Estate Investment Management has acquired Lastadia Office, a fully let office building located on an island by the western bank of the Oder River in Szczecin, from Greenstone Asset Management. This is another transaction finalised in recent weeks on regional city office markets by Greenstone, which specialises in private equity investment. In early June, the company announced its acquisition of the Format office building in Gdansk. According to Cushman & Wakefield, Szczecin has the lowest office vacancy rate of all the key office markets in Poland as demand remains steady amid supply constraints, which is likely to incentivise some real estate funds to invest in the city. The vendor was advised during the transaction by global real estate services firm Cushman & Wakefield and law firm LegalKraft. The advisers of Arkéa REIM were Sienna Investment Managers, Syrena Real Estate and Dentons.
We are pleased to have completed the sale to SCPI Transitions Europe, a French institutional fund managed by Arkéa REIM, looking for investment grade, secure investments. We also appreciate to be retained as asset manager in the project,”
says Stephane Chauvel, Partner, Greenstone.
Lastadia is our second successful exit from the office project after sale of Tensor in 2022. During the 5- years holding period Greenstone managed to significantly increase the WAULT and average rent which allowed us to generate an exceptional return for our investors,”
adds Marcin Gajewski, Partner, Greenstone.
The location and the standard of the building as well as long leases with strong and well recognized tenants and low office supply in Szczecin have all contributed to the successful commercialisation of Lastadia Office and ultimately to this investment deal. Key tenants of the building include e.ON, home.pl and mBank. These factors, combined with the attractiveness of Szczecin as a north-western harbour city attracting international business to Poland, have seen reputable investor like Arkéa REIM on behalf of SCPI Transitions Europe turning its attention to Lastadia Office,”
explains Marcin Kocerba, Partner, Capital Markets, Cushman & Wakefield Poland.
This first acquisition in Poland, in Szczecin, 150 km from Berlin, gives us a foothold in an under-supplied market with a historically low vacancy rate and solid fundamentals, with numerous infrastructure projects partly financed by the European Investment Bank. This asset will generate a particularly attractive return thanks to a rental risk shared between more than thirty tenants, with an average firm lease term of 6 years,”
explains Abdelkader Guennioui, fund manager at Arkéa REIM.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.