Villa Offices being part of the Warsaw Brewery complex, was acquired by KGAL Group, a leading independent investment and asset manager. The building was sold for approximately EUR 86.7 million. The transaction proves the great interest of both investors and tenants in multifunctional, urban destination projects.

Warsaw Brewery restored a significant part of the city to residents of the Polish capital city. Apart from its residential and food and beverage functions, the Warsaw Brewery complex encompasses three office buildings, where the first one – Gatehouse Offices, has already been delivered in 2018 and sold by Echo Investment in 2019. The Villa Offices building received an occupancy permit in April 2020 and has already welcomed its tenants.

“Warsaw Brewery is an example of the future-oriented project that shapes good cities. Lively, well-designed area located in the business centre of Warsaw attracts people to live here, tenants to locate their headquarters and investors to place their financial assets into great office buildings. The attractiveness of this quarter is also ensured by fantastic bars, restaurants and other services that respectively are being opened in the area, including craft beer manufacture and Robert Lewandowski’s restaurant. Warsaw Brewery is the first ‘destination” project developed by Echo Investment. The great success of the ‘destination’ idea encourages us to take the strategic decision of concentrating on this kind of project in the future” says Małgorzata Turek, Echo Investment’s Management Board Member responsible for the investment department. “With its best quality, reputable tenants and stable cash-flow, Villa Offices is an excellent asset for the strategic investor. The interest of tenants and investors proves its long-term value and resistance to economic turbulences. We are pleased that KGAL Group will become a new co-host of our unique ‘destination’ project,” she adds.

The 13-floor building of Villa Offices is located in the immediate vicinity of the restored Schiele Villa, a historical house of the former owner of the famous brewery, and is opening the entrance to the heart of Warsaw Brewery. The 55-meter structure with a total area of over 16,6 thousand sqm is distinguished by its fully glazed facade, which reflects the surrounding buildings like in a mirror. The building is fully leased. Renowned companies such as WeWork and Accenture have already placed here their headquarters in Villa Offices and its ground floor is occupied by a cosy Etno Café. Soon a reputable financial institution and Echo Investment, as well as well-known Mediterranean restaurant already operating in Warsaw, will also move into the building.

“The strong tenant base and the excellent quality of the building have significantly contributed to our decision to invest in this new business and lifestyle hub,” Adam Scheitza, Transaction Manager of KGAL Investment Management, sums up the reasons for investing.

The Warsaw Brewery project is located on 4.5 ha plot between Grzybowska, Wronia, Chłodna and Krochmalna streets. Echo Investment in cooperation with JEMS Architekci have designed it as a multifunctional quarter of the city, destination in which people will be eager to live, work and spend their free time. The project will be topped out with the excellent service and restaurant zone which will bring life and energy to this place. The Warsaw Brewery comprises apartments, office space, nice restaurants and bars, as well as nearly 100,000 sqm of engaging greenery and urban space.

The construction works on the project has been started in 2016 and now the final works are being concluded. In 2020 the entire complex won a CEE Investment Award by reputable EuropaProperty magazine as the best refurbishment project. In 2021, the same editorial awarded the project with the title of the best mixed-use development at CEE Retail Awards.

KGAL is a leading independent investment and asset manager with assets under management of around €11.2 billion and assets under administration of €4.0 billion. The firm’s focus is on long-term real asset investments for institutional and private investors in real estate, infrastructure and aircraft. The group, which operates throughout Europe, was founded more than 50 years ago and is headquartered in Grünwald near Munich. 345 employees contribute to achieving sustainably stable earnings, taking into account return and risk aspects (as of 31 December 2020).

Allen & Overy and Baker McKenzie advised the seller, while Colliers and DLA Piper acted as the buyers’ advisors on the deal.