Solida Capital Europe buys and renames Warsaw’s Grójecka 5 office building

Solida Capital Europe buys and renames Warsaw's Grójecka 5 office building
the Grójecka 5 office building is now G5 Prime Offices

Investor and asset manager Solida Capital Europe has bought the Grójecka 5 office building in Warsaw from Cromwell European REIT for €15.86 million.

At the same time, it has renamed the eight-storey, 11,500 square meter gross leasable area building in the Jerozolimskie district, as G5 Prime Offices.

Grójecka 5 was independently valued at the end of 2023 by CBRE at €14.75 million.

Pivotal opportunity

Solida Capital Europe says the acquisition represents a pivotal opportunity to upgrade the future of commercial real estate by integrating cutting-edge property technology, prioritizing sustainability, and also embracing rigorous Environmental, Social, and Governance (ESG) standards.

Saracho, Managing Director of Solida Capital Europe, says, “I’m excited to embark on this refurbishment project! Stay tuned as we transform this office building into a modern, dynamic space that will exceed expectations.

“At Solida we are committed to keep innovating on new projects that can create more value for all stakeholders and essentially expand the office offer in a key location of the city! Therefore, I’m thrilled to announce our exclusive partnership with CBRE that will be responsible for leasing the retail and office space. Together, we are sure to have the right team to make this project a success and a reference for others.”

Comprehensive refurbishment

Solida Capital Europe plans to undertake a comprehensive refurbishment of the building to make it more sustainable.

From energy-efficient lighting and HVAC systems to advanced waste management solutions and AI technology to manage the power efficiency in the property, every aspect of the building’s design and operation will prioritize sustainability and also environmental stewardship, Solida Capital Europe says.

Simon Garing, Chief Executive Officer of Cromwell European REIT, says, “The divestment of Grójecka 5, one of CEREIT’s six office assets in Poland, for EUR 15.86 million is consistent with our previously announced strategy to reduce our exposure to non-core markets and B/C grade office assets, effectively reducing our portfolio’s exposure to Poland to 7.4 per cent (down from 8.1 per cent ). Pleasingly, our experienced on-the-ground team completed the divestment at a 7.5 per cent premium to the latest valuation despite the relative illiquidity in the Central European real estate markets and record-low transaction activity in Europe.”

With its extensive network, industry expertise, and unparalleled market insights, CBRE will spearhead the commercialization efforts for the refurbished office building, ensuring optimal tenant alignment and long-term value creation.

Dynamic and collaborative workspace

The refurbished office building will serve as a dynamic and collaborative workspace, equipped with innovative amenities and flexible configurations to accommodate diverse tenant requirements.

Solida Capital Europe is a real estate investment firm with own development team dedicated to driving positive change through sustainable development and innovation. With a focus on ESG principles and cutting-edge technology, we strive to create vibrant, resilient, and also future-ready communities that enhance quality of life and promote environmental stewardship.

For the buyer, Allen & Overy acted as legal advisor, TPA acted as tax advisor, CBRE covered the commercial and technical expertise.

For the seller, CMS was the legal advisor and Colliers International, the sales agent.

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