Built in 2018, the BIG office, which has been awarded a BREEAM New Construction Excellent rating, occupies almost 11,000 square metres. EREF will also acquire a plot of land owned on a freehold basis. The developer of the office is Ghelamco Poland.

The office is in a location attractive to tenants. Currently, only 6.1% of the space is vacant, the negotiations for which are underway with potential tenants. The building is located in the western part of the city centre of Kraków, with easy access to the historic Old Town, and other parts of the city.

Viktorija Orkinė, Head of Eika Asset Management, the investment management company that manages EREF, says that Kraków’s office market is characterised by stable international tenants looking for sustainable and modern office space in the city, thanks to its highly educated.

"For investors, Poland currently offers great investment opportunities. With foreign investors retreating from Poland, the majority of its office market liquidity has concentrated in Warsaw, leaving the regional city office market liquidity scarcer. As a result, we are in a position to negotiate with large international players and acquire offices at attractive prices that were not available before", she says.

"EREF’s value-add strategy capitalises on the team’s expertise in real estate management, development and the ability to distinguish acquisitions in sectors that currently offer the highest risk-adjusted returns. The fund will continue investing in logistics, offices and retail parks in Poland", she adds.

According to Viktorija Orkinė, the reduced market liquidity and investment volumes allow the fund to negotiate better terms for the EREF investors.

"At the moment, high-quality assets with stable cash flows in Poland can obtain competitive financing from both local and foreign (German, Austrian) banks. Poland is the star of Central and Eastern Europe and the strength of its economy offers great investment opportunities", she commented.