Echo Investment divests office buildings in Fuzja

by   CIJ News iDesk III
2022-01-11   18:49
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Echo Investment signed a preliminary sale agreement for three office buildings in Fuzja Łódź, that will be acquired for over EUR 56.4 million by KGAL Group, a leading independent investment and asset manager. The buildings encompass 22,000 sqm of BREEAM-certified modern office space. They are an important part mixed-use Fuzja, a project revitalizing a post-industrial area of Łódź. The transaction is yet another proof of great interest of both investors and tenants in multifunctional, urban destination projects.

Fuzja is a unique post-industrial space that combines history with modern solutions, high standard and a great location in the city center. The office buildings are under construction and will be completed in 2022. They will be Excellent BREEAM-certificated which is reflected, among other things, in low energy consumption, as well as the use of environmentally friendly building and finishing materials. The modern shape of the buildings and their façade will correspond to the entire revitalized Fuzja complex.

“We are happy that KGAL Group saw the value of Fuzja office buildings already during their construction. It is a clear proof that investors and tenants appreciate our strategy of creating destinations, mix-used parts of the city where people can live, work and entertain. For many years this historic area was closed and inaccessible to the residents of Łódź. Now we are working to make it an integral part of Łódź again, meet the needs of its citizens and become a background for a sustainable, urban lifestyle,” says Małgorzata Turek, Echo Investment’s Management Board Member responsible for the investment department.

The main tenant of the office complex will be Fujitsu Poland Global Delivery Centre, which decided to consolidate its office there and will take up 16,300 sqm. The company’s new headquarter is located in the immediate vicinity of the historic Art Nouveau powerhouse which will be refurbished and adapted to new functions.

Fuzja is not the first destination project that caught the eye of KGAL Group. Earlier this year the investor acquired Villa Offices, a part of the Warsaw Breweries mixed-use complex.

“With its best quality and interest of reputable tenants proving its long-term value, the office buildings of Fuzja are excellent asset for the strategic investor,” comments Adam Scheitza, Transaction Manager of KGAL Investment Management, sums up the reasons for investing.

Fuzja, an urban project at ul. Tymienieckiego in Łódź is becoming an open and friendly part of the city. Apartments, offices, and space for services, as well as shops and restaurants, will be built on an area of nearly 8 hectares. New city squares, shared spaces, and green areas will occupy almost 4 hectares, encouraging people to spend there their free time and relax. Medusa Group studio is responsible for the architectural design of Fuzja.

KGAL is a leading independent investment and asset manager with a managed investment volume of more than €15 billion. The group sources, executes and manages long-term real asset investments for institutional and private investors in real estate, sustainable infrastructure and aviation. KGAL, which operates throughout Europe, was founded more than 50 years ago and is headquartered in Grünwald near Munich. More than 345 employees are dedicated to achieving sustainable, stable investment performance, taking into account return and risk criteria (as of 31 December 2020).

Colliers, Allen & Overy and Baker McKenzie were Echo Investment’s advisors in the transaction.