Macquarie Global Property Advisors Limited (MGPA) and London & Regional Properties Limited (L&R) have entered into a 50/50 joint venture for the ownership of Rondo 1, a prime office building in Warsaw, Poland.

MGPA’s investment is being made on behalf of its managed fund, MGP Europe Fund II.

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 is located in the heart of Warsaw’s CBD.  Rondo 1 is a grade A property offering the highest quality accomodation in the market to corporate occupiers, with tenants such as Ernst & Young, Baker & Mackenzie and Calyon Bank.  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. 

MGPA Managing Director Alex Jeffrey said, “Warsaw is increasingly establishing itself as a key financial hub in Central Europe and is the prime location in the region for multi-national companies to establish offices or expand their requirements. 

“This is a very high quality building in a first class location.  The investment should allow the fund to capture the value accruing from increasing occupier demand in the market,” said Mr Jeffrey.

Ian Livingstone of L&R said, “We are delighted to be partnering with MGPA in our investment in Rondo 1.  MGPA is an ideal partner for Rondo 1 as they which share our confidence in the strength of this asset and our vision for the future of the Warsaw office market.”

MGP Fund II closed in September last year with equity commitments of US$1.3 billion.

“Despite the competitive market we are seeing a lot of interesting investment opportunities in a number of countries across Europe and across all real estate sectors.  We are making excellent progress with our acquisition programme and expect to be making more announcements in the near future,” said Mr Jeffrey.