Swedish real estate company Eastnine AB has acquired the Warsaw Unit, a 46-story office building in Warsaw, Poland, for €280 million (approximately 3.23 billion SEK) from Ghelamco. This acquisition marks Eastnine’s entry into the Warsaw market and is considered the largest office transaction in Europe this year. The Warsaw Unit stands 202 meters tall, offering 59,800 square meters of leasable space and 400 parking spots across 46 above-ground floors and three underground levels. The building is fully leased to over 20 tenants, including the headquarters of Polish insurance company Warta, as well as offices for Amazon, Stryker, Moderna, CBRE, and Panattoni. The annual rental income amounts to €18 million, with an average remaining lease term of 5.1 years.
The transaction was financed through existing cash reserves, a five-year secured green bank loan of €168 million from German and Vienna-based lenders Helaba and Erste Group, and a directed share issue of nearly 8.8 million new Eastnine shares to Warsaw Unit NV, a subsidiary of Ghelamco Group, at Eastnine’s long-term net asset value per share. Eastnine’s CEO, Kestutis Sasnauskas, stated, “I can hardly imagine a better way for us to enter the Warsaw market than by acquiring a top property in a prime location. We are very grateful to Ghelamco, which has not only developed this amazing landmark that is changing the Warsaw skyline but has also become a shareholder of Eastnine.”
Following this acquisition, Poland becomes Eastnine’s largest market, accounting for over 50% of the company’s property portfolio. The deal is expected to increase Eastnine’s management profit per share by 18%, reaching €0.32, while the long-term net asset value per share remains at €4.68. The loan-to-value ratio rises to 50%, including a three-year unsecured loan of €10 million from Estonia’s LHV Pension Funds. This strategic move signifies a significant milestone in Eastnine’s growth journey, enhancing its presence in Europe’s fastest-growing economy and substantially boosting its profitability.