25 February 2008 - MGPA, a private equity real estate fund management company, has acquired the remaining 50% of Rondo 1, a prime office building in Warsaw, Poland from its joint venture partner, London & Regional Properties. 

MGPA entered a 50/50 joint venture, on behalf of MGP Europe Fund II, to acquire Rondo 1 in June 2006.  This acquisition of the remaining 50% interest is being made on behalf of the same fund.

Rondo 1 is a distinctive 40 storey, 192 metre modern office tower designed by renowned American architects Skidmore Owens & Merrill.  The glass tower also has an adjacent interlinked 10 storey building and has a prime location in the heart of Warsaw’s CBD. 

Rondo 1 is a grade A property offering the highest quality accommodation in the market to corporate occupiers.  The building is in close proximity to the central railway station, consists of 60,000 square metres of leaseable space and has 492 car parking spaces.

Since the original investment, the occupancy level of the building has increased strongly from 49% to 91% with all of the remaining space under offer or subject to discussion with potential tenants.  Passing rents have also grown substantially, with the building now commanding the highest rental levels in the city. 

Alex Jeffrey, MGPA’s Europe CEO said: “We are delighted to have acquired the remaining 50% of this property, as this means the Fund is in full control of what is widely regarded as the premier office building in one of the fastest growing markets in Europe.   

“Since our original investment in 2006, Warsaw has continued to grow as a financial centre which has resulted in increased demand for office space and corresponding increase in rental values.  We believe that being sole owner of Rondo 1 will maximise our  ability to actively manage the investment and take further advantage of the economic growth in Warsaw.”