Erste Group launches first installment of loan for further development of Quorum complex
Erste Group Bank AG has granted a new loan to Cavatina Holding S.A., this time for the realization of Cavatina’s flagship project in Wroclaw. The financing, which was initiated back in October, will ultimately provide the Polish developer with funds for refinancing the costs of the Quorum D office building (up to 25 million euros) and for further financing of the Quorum A construction (up to 20 million euros), as well as an additional 3 million euros to cover VAT. The multifunctional Quorum complex, rising on the banks of the Oder River, is the largest project of its kind in the city, attracting the attention of tenants and residents with its exceptional location and high-quality spaces.
For years, we have been building trust within the international financial sector through consistent implementation of our objectives and strong results in the Polish office development market. This has once again enabled us to secure financing for one of Cavatina's flagship projects. Quorum represents our third and largest investment in Wroclaw, aligning perfectly with the ongoing transformations in the city and creating new recreational spaces along the Oder River that are open to all. The D building, which was completed a year ago, serves as an excellent showcase for this complex – tenants have established user-friendly offices tailored to their needs, and the impressive and functional common areas are highly beneficial to their employees," says Daniel Draga, Vice President of the Board at Cavatina Holding S.A.
The loan agreements between Erste Group Bank AG and Cavatina Holding S.A., with a total value of up to 48 million euros, were signed on October 19, 2023, as announced by the developer. The first portion of the funds for refinancing and further investment has already been credited to the company's account.
Previously, in May 2022, a consortium of Erste Group Bank AG and Raiffeisenlandesbank Niederösterreich-Wien AG provided financing of up to 70 million euros and 10 million Polish zlotys to companies implementing the Ocean Office Park in Krakow. Collaboration with Erste Group Bank AG is another example of Cavatina Holding's successful utilization of foreign bank support in financing its investments. In December 2021, Cavatina also secured funds of 82 million euros and 42 million Polish zlotys from BERLIN HYP AG based in Berlin and Bank Pekao S.A. for activities related to the flagship multifunctional project - Global Office Park - in Katowice. In January 2022, another subsidiary of Cavatina Holding S.A. obtained a 50-million-euro investment loan from the German bank Norddeutsche Landesbank - Girozentrale for the refinancing of the Tischnera Office building in Krakow.
Cavatina Holding S.A. is a publicly listed company on the Warsaw Stock Exchange and one of the largest office developers in Poland. The company is continuing the process of diversifying its sources of funding to support the expansion of the Group's portfolio in selected regional markets. To date, the Group has completed the construction of properties that have delivered over 300,000 square meters of Gross Leasable Area (GLA) to the market, and there are currently investments under construction with a combined area of over 136,000 square meters. In addition to obtaining financing from banks, the Group successfully carries out public bond issuances offered in Polish zlotys and euros. Apart from the bond issuance program established in February of this year, with a limit of PLN 150 million, the Group can also continue its activities within a non-prospectus bond issuance program with a limit of PLN 200 million, which can be offered to selected qualified investors.
The Quorum complex will ultimately consist of five buildings with various functions. In the emerging residential tower, Resi Capital is preparing apartments of the highest standard. Users and residents of Quorum will also be able to enjoy the new riverside promenade.
On the ground floors of the Quorum buildings, there will be commercial spaces. Terraces and green areas have been designed on the podium of the entire complex and on the fourth floor. Additionally, on the southern side of the D building, which has already been put into use, on the opposite side of the street, public green areas and a promenade will be created. The entire complex includes approximately 1,500 parking spaces. All Quorum office buildings will undergo BREEAM and WELL Health-Safety Rating certification. The D building has already achieved both of these certifications, including BREEAM at the Excellent level."