Azora sells Harmony to Catalyst

05 September 2018

The Spanish Azora Europa I fund sold the Warsaw Harmony Office Center II complex to Catalyst Capital for its new Catalyst Core Plus European Property Fund (CCPEPF), a €1 billion “evergreen” real estate fund. The seller was represented in the transaction by CBRE while Savills represented the buyer. 

Harmony Office Center II is a modern, A class office complex located in Warsaw's Mokotów district. The complex consists of three office buildings, which offer more than 18,000 sqm of gross leasable area and more than 400 parking spaces. The key tenants include Millennium Bank and companies from the WPP advertising group. The facility is located in the vicinity of the Pole Mokotowskie park and is unique due to the intimate climate and green surroundings. 

The Warsaw office market is growing at a rapid pace and there are a lot of interesting locations. We like locations like this one where the potential pipeline in future is limited and the offices offer to the tenants features like good architecture, a nice green surrounding and the vicinity of Pole Mokotowskie. It is a location with a well-established position, recognition of tenants and strong historical occupancy. We are very pleased that Harmony Office Center II is now a part of our new core-plus fund’s investment portfolio, providing stable, long-term income - says Tomasz Doktór, Catalyst Capital. 

The sale of the prestigious Harmony Office Center II complex after six years of management was planned in accordance with our long-term strategy. Since its acquisition Azora has made improvements in the buildings, changed the tenant mix and extended the lease agreements including the successful  10 year lease extension with Millennium Bank. These asset management activities combined with the unique quality and location of the buildings have created a unique investment product - says Anna Szelc, representing Azora Europa. 

Investment activity of funds that are interested in office buildings in Poland is growing year on year. The Warsaw office market has very diverse facilities, both historic buildings and modern complexes that can be attractive for investors. At the same time, today's transaction proves that the investment radar includes not only locations in the very center of the capital, but also prestigious neighborhoods, offering interesting surroundings and well-developed communication infrastructure – says Przemysław Felicki, Director in the Capital Markets Department, CBRE. 

Harmony Office Center II is the A-class asset which we believe will perform well in our Client’s portfolio. The combination of very good location, quality of the office space, pleasant surrounding and income profile including above average WAULT, rents at the market levels and strong covenant tenants make it defensive investment already proved by high tenants’ retention level”  - adds Marek Paczuski, Deputy Head of the Investment Department at Savills

Azora Europa is a Spanish Real Estate Private Equity investor active in CEE region, and especially in Poland, since 2007. 

After sale of Harmony Office Center II Azora Europa owns a portfolio comprising 5 office complexes in Poland (Cristal Park and Mokotów Plaza in Warsaw, Avatar and Green Office ABC in Cracow and Aquarius Business House in Wrocław).