Fourth real estate acquisition in 2018 by Czecho-Slovak High Yield Fund: WOOD & Company acquires prominent business centre BBC5, in Bratislava
BRATISLAVA, 17 December 2018
Prominent business centre BBC5, in the attractive commercial zone on Plynárenská street in Bratislava, has a new owner: a Czecho-Slovak High Yield Fund managed by investment bank WOOD & Company has bought the business centre from the international Heitman Real Estate Fund. This is the second deal closed between the two companies this year: in November, the acquisition of Aupark Tower was declared the best investment transaction on the Slovak commercial real estate market in 2018 at the 14th CIJ Awards.
This transaction, yet another in which a local investor has acquired a premium office building from an international real estate fund, confirms the current trend of significant increases in local capital in the entire CEE region.
Local investors are focusing on long-term commitments and are thus bringing stability, long-standing experience and market knowledge to the commercial real estate market. This is also true of WOOD & Company.
"Some 10 years ago, several foreign real estate funds came to Slovakia; now their tenure is coming to an end. This is why we created our fund, and we have been very careful to select the most established assets, where an above-average yield is expected even when the market is flooded with new buildings. Our aim is long-term commitment and the professional management of premium office buildings," according to Martin Šmigura, Director of WOOD & Company’s Slovak Investment Banking.
The benefits of a well-established building include a high occupancy rate, and efficient management and operation. Mr. Šmigura says that: "Companies will always look for offices in buildings with good transport accessibility and a wide variety of facilities for their employees".
BBC5 includes over 35,000 m2 of leasable office and business area in three blocks, and almost 900 garage and outdoor parking spots. The building’s tenants include Accenture, Millennium and Bartošík Šváby, and it has been awarded a green BREEAM certificate, evaluated as Very Good.
WOOD & Company intends to further strengthen its position on the real estate market in Bratislava and presents itself as a strong local player. The real estate fund’s ambition is to achieve EUR 500m invested in the Czech Republic and Slovakia in the next few years. The company is also beginning to look for opportunities in the Hungarian and Polish markets.
WOOD & Company entered the real estate market in Bratislava in the summer of 2017, when it acquired the Westend Tower office building in Patrónka. In June 2018, the company acquired the Aupark Tower and Lakeside Park office buildings, together with the adjoining land.
