Greenstone, a fund specialising in the private equity investments, has purchased an 80% package of shares in the special purpose company which owns Format, an office building located in Gdańsk. The remaining 20% of shares will stay in the Torus Group. It has been the first sales transaction of such magnitude concerning a newly built office facility across regional markets in Poland since 2022. The seller – Torus – has been supported throughout the process by experts from Cushman & Wakefield, a global commercial real estate services firm, with legal consulting services provided by a renowned law firm, Greenberg Traurig.
Office quality appreciated
The investment market had been long awaiting the first positive signal of revival on the office map in cities other than Warsaw. The sale of a majority share package in Format, an office building completed in 2022, marks yet another success of the Gdańsk-based developer, achieved in the ever-demanding market environment.
– There is no escaping the fact that the current situation on the office market differs greatly from the one we observed just several years ago. The post-Covid correction is still underway, however, on the other hand, as history shows, the high-quality projects always stand their ground. We were building and commercialising Format in the pandemic and post-pandemic time, yet it has been leased out in 100%, and now has found its buyer. We are especially pleased with the fact, recorded for the first time in the history of our company, that while selling a particular office building, there was not a single additional square metre of leasable space available – says Sławomir Gajewski, Torus CEO. - We have been working with the combined strength of the entire team of Torus in order to achieve this success. The process has embraced the concept and design, construction works, commercialisation efforts, fit-out, property lease management, and the current sale to top it all off – he adds.
Greenstone, when placing the capital of international private and institutional investors, pays special attention to the surrounding environment of the Polish office market. Upon selling the Tensor building in 2022, the fund is back in Tricity having purchased the majority share package in Format, a Gdańsk-situated office building.
- Greenstone has been investing in the Tricity office market since 2017, recording extraordinary rates of return for our clients. We are glad we can continue our investment story by purchasing Format, whose key strengths relate, among others, to its location in a strategic part of Gdańsk, and the amazing quality of workmanship - says Marcin Gajewski, Partner in Greenstone.
- Additionally, we have appreciated the unique tenant-mix. Our main tenant, ERGO Technology & Services, a subsidiary company to Munich Re (one of the biggest reinsurance company in Europe, with the AA rating awarded by Fitch agency), makes the latest investment of Greenstone extremely attractive, and allows us to keep providing our clients with high rates of return - adds Stephane Chauvel, Partner in Greenstone.
Professional support
Torus has been supported throughout the sale process by experts from Cushman & Wakefield, a global commercial real estate services firm, with legal consulting services provided by Greenberg Traurig, a law firm.
- It is no surprise that the first transaction, after a long break, on the regional office market concerns this very location, and this very developer. Oliwa remains the primary business hub on the Tricity map, even though other locations along the SKM railway enjoy considerable popularity, too. Torus, on multiple occasions, has proved the quality of its investments, which generated trust on the part of Greenstone Asset Management, a company which builds its project portfolio with great care. This transaction comes as reassurance for private investors and private equity funds, as they can now see numerous interesting opportunities opening up, which in turn can boost the business activity of other global players on the capital market - explains Marcin Kocerba, Partner in Capital Markets department in Cushman & Wakefield in Poland.
- We congratulate Torus Group on completing the transaction, carrying significant importance for the regional office market. We are pleased to have been able to support our client in the sale process which proved that also these days there is investors’ demand for top-class office buildings, those superbly located, and boasting a proper tenant-mix. – said Rafał Siwek, Local Partner in Greenberg Traurig real estate practice, who has conducted the transaction.
Format, offering nearly 16,000 square metres of modern office space, is located in a business part of Gdańsk, at the border of Oliwa and Przymorze Małe. It is excellently served by public transport – situated in direct vicinity of the PKP/SKM Oliwa train station, providing a comfortable and quick commute to work from various sites of the agglomeration. Format can pride itself on all features which a building needs to be called an A-class facility. Alongside the location, quality, and functionality, the building stands out with its unique architectural and technological solutions that consider respective environmental aspects, and ensure the creation of a healthy and friendly work ambient. The LEED Platinum and ‘Obiekt bez barier’ (Facility without barriers) certificates provide further proof. One can find among Format tenants i.a. ERGO Technology & Services, Foundever, Mako TSL, Dr. Oetker, Assa Abloy Mercor Doors, Siemens Gamesa, Symfonia, and Finsa. The building is also supported on the inside by collab – an operator of flexible office spaces, signed with the Torus brand. Format was designed by the Tricity branch office of APA Wojciechowski Architekci, an architecture design office.
Torus is one of the leaders among Polish office developers, although the company’s portfolio is far broader – it is made up of hotel investments, including revitalizations, warehouses, and residential housing as well. Up to now, Torus has delivered more than 180,000 sq.m. of leasable space onto the Tricity market. Including Format, Torus has concluded eight sales transactions of its office property to seven various investment funds.
The Tricity is the third-largest regional office market in Poland, trailing only Cracow and Wrocław.
