A consortium of four banks has granted HB Reavis a loan to finance the construction of three multifunctional Varso Place buildings in the center of Warsaw. The loan amount is EUR 475 million, which makes it the largest transaction of this type in the history of the commercial real estate market in Poland and one of the largest in Central and Eastern Europe, the company said.
“The financing obtained for Varso Place once again confirms our position on the European real estate market. In demanding times, we remain a stable and reliable partner for the leading financial institutions in the region. This is a good omen before the start of new projects that we are planning on key markets in Poland, Great Britain and Germany. We are convinced that, like Varso Place, it will be a first-class investment and a benchmark on the market in terms of quality, sustainable development solutions and tenant portfolio,” said Peter Pecnik, board member and CFO, quoted in the release.
The composition of the consortium was as follows: Santander Bank Polska as loan agent and underwriter (EUR 165 million), Bank Pekao as collateral agent (EUR 85 million), Helaba (EUR 125 million) and Berlin Hyp (EUR 100 million) as original lenders. The consortium granted HB Reavis additional funds to refinance the project – the loan amount increased from EUR 350 to 475 million.
Varso Place was built right next to the capital’s Central Railway Station. Three buildings offer a total of 144,000 sqm. m2 of leasable space, including offices, a hotel, an innovation center and service premises. A distinctive part of the investment is the 310-metre Varso Tower skyscraper designed by Foster + Partners.