WOOD Flash – Atrium: acquires a high-street asset in the centre of Warsaw, for EUR 301.5m
Atrium has purchased a high-street retail asset in the heart of Warsaw, for EUR 301.5m. The asset, located on Marszalkowska Street, directly overlooking the Stalinist sky-scraper Palac Kultury i Nauki, offers 26k sqm of retail space and an additional 11k sqm of office and storage space. On our estimates, the price for the retail part of the asset came in at around EUR 10k per sqm. Atrium did not disclose either the yield, or the rental income on the transaction; as such, our estimates may be prone to a large margin of error. That said, pencilling in the average rents in the retail part of the asset at around EUR 35-40/sqm puts the transaction yield at c.4.0-4.5%. Considering the prime location, as well as the tight investment market, it comes as no surprise to us that the asset did not come cheap. That said, we believe this is a fair price to pay, considering the quality of the asset, as well as what we believe is substantial room for further upside, driven by asset management. Following a prolonged period of portfolio streamlining, we believe Atrium's team has managed to secure a worthy addition to the portfolio.Atrium European Real Estate is engaged in the ownership, management and operation of commercial real estate in the retail sector. Co. primarily operates in Poland, the Czech Republic, Slovakia, Russia, Hungary and Romania. Co. has two reportable segments: the standing investment segment includes all commercial real estate held to generate rental income for Co.; and the development segment includes all development activities and activities related to land plots. As of Dec 31 2016, the portfolio of standing investments consisted of 59 properties in Poland, the Czech Republic, Slovakia, Russia, Hungary, and Romania.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
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