Poland’s largest commercial real estate transaction in 2014
2014’s largest commercial real estate transaction in Poland belongs to TriGranit-Budapest, 5 February 2015
One of the largest privately owned development corporation in Europe, TriGranit Development conducted development activities primarily in Poland in 2014 while focusing on project preparations and real estate sales in its other active markets. The sale of Poznan City Center, representing the largest commercial real estate sale in Poland in 2014, further enhanced the success story of its developer TriGranit, having already been recognised with a shower of awards. Keeping with the trend of the company consistently ranking in the top three among European property development businesses, this project has also been acknowledged with three prestigious awards by the international representatives of the profession.
In terms of developments, in April 2014 TriGranit began the construction of the Class A office building “F” of Bonarka for Business (B4B) project, in the new, fast developing quarter of Krakow, Poland. In December 2014, Tower “E” was completed offering leasable office spaces totalling 10,000 sqm. The office building is scheduled for opening in the first quarter of 2015. The success and market recognition of B4B is indicated by 100% occupancy rates of the buildings already completed.
In 2014 TriGranit leased a total of 11,452 sqm of commercial floor space, while leasing renewal reached 6,420 sqm area. In addition, the company leased 21,643 sqm office space and renewed leases covering 4,000 sqm in 2014. As for office space leasing, this result is a 50% increase in comparison to 2013.
2014 proved to be a very active year for TriGranit in terms of property sales as well. In March 2014, in partnership with Europa Capital and the Polish State Railways, the company sold Poznan City Center, the most popular shopping and entertainment centre of Poznan, featuring 58,000 sqm of rental space and having already received numerous international professional awards. Setting a record, TriGranit needed only 14 months to convert the old central railway station of Poznan into a shopping centre. The sales transaction was also the highest on the Polish commercial real estate market in 2014. In Hungary, the Millennium Gate building complex in the Millennium Quarter expanding over a gross 360,000 sqm area was sold in September 2014. With additional successful real estate transactions, TriGranit sold projects worth a total of EUR 30 million in 2014.
TriGranit’s effective and high quality work was recognised with a number of awards in 2014. In February, the Poznan City Center shopping and entertainment centre and transportation hub was named Retail Project of the Year at the CEE Retail Real Estate Awards. In June, TriGranit was awarded the 2014 Developer Award at the Global RLI Awards gala held in London with top industry players attending the event. In December, the company also won the Best Mixed Use Developer Europe Award and the Most Innovative Developer Europe Award in their respective categories of World Finance magazine’s Real Estate Awards 2014, this double victory being one-of-a-kind in Europe.
The year 2015 will be about preparing projects already in the pipeline and cleaning up the portfolio. “Our main focus will remain in Poland with various office buildings and shopping centres planned in four cities. In the next 2–3 years, we are developing approx. 100,000 sqm of office space and 30,000 sqm of retail space for lease in the region. We continue to review our predevelopment options in Croatia, Slovakia, Serbia, Romania and, of course, in Hungary. We have really good building plots in Hungary, and if the economic environment turns favourable for us, we plan to launch development projects here as well. We also have office building projects in preparation in Poland and Slovakia. In addition, we expect to clean-up our portfolio in the non-strategic areas. After the stagnation of the recent years, we are seeing a gradual upturn in the market, with increased activities both from lessors and investors,” said Árpád Török, CEO of TriGranit Development Corporation.
About TriGranit Development Corporation
TriGranit Development is the largest real estate investment, development and operation company, with presence in nine countries of the region. During its more decades of history, TriGranit has completed development projects in six cities of the region’s four countries, totalling over 1 million sqm worth approx. EUR 2.5 billion, and plans to realise over EUR 4 billion of mostly major mixed-use developments in the coming years.