Echo Investment sells three office buildings in its destination project Fuzja to KGAL Group for EUR 56.7 million
Echo Investment sells three office buildings in its destination project Fuzja to KGAL Group for EUR 56.7 million

Three office buildings in Fuzja Łódź project are acquired by KGAL Group, a leading independent investment and asset manager, for over EUR 56 million. The buildings are an integrated part of mixed-use destination project revitalizing a post-industrial area of Łódź that is moving the city center. The buildings are fully leased and encompass 22,000 sqm of BREEAM-certified modern office space. This is the second sale that Echo Investment signed on 30th June – earlier today Trigea Real Estate bought MidPoint71, a landmark office building in Wrocław.

Fuzja is a unique post-industrial space that combines history with modern solutions, high standard and a great location in the city center. Two office buildings are already completed and occupied by Fujitsu Poland Global Delivery Center. The third one is undergoing finishing touches and will be taken by CitySpace, an operator of flexible office space. The buildings are Excellent BREEAM-certificated which is reflected, among other things, in lower energy consumption, as well as the use of environmentally friendly building and finishing materials. Fuzja is not the first destination place that caught the eye of KGAL Group. Last year the company acquired Villa Offices, a part of the Warsaw Breweries mixed-use complex.

The transaction is yet another proof of great interest of both investors and tenants in multifunctional, urban destination projects.  It is visible that investors and tenants appreciate our strategy of creating destinations, multifunctional parts of the city where people can live, work and entertain. It is also important that the office buildings sold are fully leased - mainly by Fujitsu Poland Global Delivery Centre, perfectly designed and made of high-quality materials. We are happy to welcome KGAL Group as the co-host of Fuzja, an excellent new part of Łódź,” says Małgorzata Turek, Echo Investment’s Management Board Member responsible for the investment department.

We are delighted to be working with Echo Investment once again on a destination project transforming the city. The Fuzja office buildings, thanks to their quality and reputable tenants, are proving their long-term value and are an excellent asset for the strategic investor,” comments Adam Scheitza, Transaction Manager of KGAL Investment Management.

For many years the historic area of Fuzja on ul. Tymienieckiego in Łódź was closed and inaccessible to the residents of Łódź. Echo Investment is working to make it an integral part of Łódź again, meeting the needs of its residents, tenants and visitors. Apartments, offices, and space for services, as well as shops and restaurants, will be built on an area of nearly 8 hectares. The main tenant of the office complex – Fujitsu Poland Global Delivery Centre – consolidated its office there and took up 16,300 sqm. The company’s new headquarter is located in the immediate vicinity of the historic Art Nouveau powerhouse which will be refurbished and adapted to new functions. The modern shape of the office buildings and their façade corresponds closely to the entire revitalized Fuzja complex. Medusa Group studio is responsible for the architectural design of Fuzja.

KGAL is a leading independent investment and asset manager with a managed investment volume of more than €16.5 billion. The group sources, executes and manages long-term real asset investments for institutional and private investors in real estate, sustainable infrastructure and aviation. KGAL, which operates throughout Europe, was founded more than 50 years ago and is headquartered in Grünwald near Munich. Our 338 employees are dedicated to achieving sustainable, stable investment performance, taking into account return and risk criteria (as of 31 December 2021).

Colliers, Allen & Overy and Baker McKenzie were Echo Investment’s advisors in the transaction, whereas Savills and DLA Piper advised the buyer.

On the same day, MidPoint 71, a landmark building in Wroclaw, was acquired by Trigea Real Estate Fund, the fastest-growing Czech fund. The project of Echo Investment, which obtained the occupancy permit earlier this year, was sold for over EUR 100 million. MidPoint 71, a recently completed office building, has attracted attention of many big tenants due to the great location and design. The project is designed by Medusa architects in line with the latest trends in real estate, both from environmental and employees’ perspective. It is leased above 80% by such a reputable brands as 3M GSC Poland, Pyszne.pl, PwC, CitySpace, CCC Group, and Electrolux Poland. The building is expected to be fully leased in the coming months.

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