CBRE SEE, a fully owned corporate office by CBRE Group in charge of South East Europe region (SEE), advised on the sale of an office tower – Zagrebtower. This transaction confirmed that the investment market remains active in the SEE region, but also that investors are still showing interest for investing in office schemes with proven performance despite setbacks caused by COVID-19 pandemic.
Zagrebtower is located at the heart of Croatia’s capital central business district, and represents one of major landmark office buildings in Zagreb offering 25,900 square meters of leasable area. Proof of how successful the project has been is the current occupancy status of 99%, which is one of rare examples in Zagreb’s office market. CBRE advised CA Immo in the sales process, which is one of the leading commercial real estate investors across Central Eastern Europe (CEE). CA Immo, who in parallel with the strategy of investing in CEE’s capital cities, has for a strategy sale of non-core assets across South Eastern Europe (SEE), as well as across secondary cities within CEE region. The disposal of their non-core assets has been successfully implemented in Poland, Hungary, Romania, Bulgaria, Slovenia, as well as now in Croatia with the sale of Zagrebtower.
CBRE organized a tender process for the sale, where S-Immo submitted best acquisition terms and successfully closed the transaction despite the COVID-19 pandemic which occurred in the middle of the sales process. S-Immo already owns two office buildings in Zagreb, namely Eurocenter and HOTO Tower, and now the third one which confirms their dedication to investing in Croatia, as well as confirms their positive perception of SEE as a region.
– We would like to congratulate both CA Immo and S-IMMO on successfully closing one of the most recognized office buildings in Zagreb. CBRE has successfully advised on numerous transactions of office properties, during which we seen an increase in the number of international groups investing in SEE’s office segment. This trend is set to continue going forward as we still receive a lot of requests from foreign investors considering entering the SEE region, even though they are fully aware of the situation triggered by the COVID-19 pandemic – Uroš Grujić, Head of Investment at CBRE South Eastern Europe (SEE), says.
– We as CBRE are continuing to promote the region as an attractive investment destination where we see further opportunities arise, both within office segment, but also within other real estate asset classes such as retail, logistics and industrial. We hope for the situation with the pandemic to stabilize, where we are of an opinion that it will additionally encourage investors to deploy capital in countries of SEE region as each of the country is showing a solid supply/demand balance, as well as other stability in other market conditions even in an unexpected turbulence on a global scale.