Heitman acquires Warsaw offices for $287m

Investing from its third European vehicle, Chicago’s Heitman has acquired 1 million square feet of office space in Warsaw.

The European arm of Chicago-based Heitman has acquired the Mokotow Business Park in Warsaw for a reported price of $287 million (€218 million).

The class-B complex is comprised of nine buildings totaling more than 1 million square feet of office space, located near the Gallery Mokotow mall. The seller was Globe Trade Center SA.

Heitman’s latest European private equity real estate fund, European Property Partners III, closed in 2005 on €350 million and focuses on all sectors in Poland, the Czech Republic, Slovakia, Hungary, Estonia, Latvia, Lithuania, Slovenia, Romania and Bulgaria.

Last month, Otis Spencer, the firm’s Warsaw-based senior vice president and director of portfolio management, told Private Equity Real Estate that the fund is increasingly focusing on value-added investments, as well as non-traditional property classes—including for-sale residential development. Spencer also said that the firm is building portfolios in the Polish retail and Central European office sectors, which Heitman intends to sell to core funds currently looking to invest in Central and Eastern Europe.

“Right now, there is a lot of liquidity,” Spencer said. “Exiting is not a problem.”

Heitman was one of the first US property firms to enter Central Europe, developing the 32-story Warsaw Financial Center building in 1996. The firm closed Heitman Central Europe Property Partners in 2000 on $125 million, with a second vehicle closing in 2002 on €175 million.