|The Lipiński Passage is one of few historical buildings in central Warsaw that offer modern office space|
Courtesy of S+P Gruppe
Adam Zdrodowski: When did Union Investment acquire the building and what was the transaction price?
Volker Noack: Union Investment acquired the historical building in 2010 for its institutional fund DIFA-Fonds Nr. 3. As the property forms part of an institutional fund the purchase price is confidential.
The building recently underwent renovation. When did the process finish?
After having received an occupancy permit, the Lipiński Passage on Aleje Jerozolimskie was opened in October 2011. In March 2012 we took over the building into the portfolio of one of our special property funds.
How much did the Lipiński Passage change during the renovation process?
Under the aegis of Union Investment, the building underwent complete refurbishment and is now operating as a high-class office and retail scheme with some 6,000 sqm of leasable area. The property originally comprised two residential buildings with a joint courtyard.
During the process of reconstruction the residential space was converted into perfectly visible retail space, premium office space and restaurant facilities with an internal patio. The facade was only slightly changed.
The facade on the street side, including balconies and decoration elements, was restored to the original pre-war state. The facade in the courtyard was largely preserved and restored. The balconies and staircases had to be adapted to the new glass roof.
It was very important for us to restore the fin-de-seicle charm of the building and, at the same time, to deliver a high-quality modern office project.
How much leasable space does the Lipiński Passage offer?
At the Lipiński Passage some 1,950 sqm of office space and 889 sqm of retail space are available. The leasable office space ranges in size from 60 sqm to 560 sqm, while the retail units are sized from 60 sqm to 570 sqm.
|Mr Noack sees ample tenant interest in the building|
Courtesy of S+P Gruppe
At what stage is the process of commercializing the building?
The Lipiński Passage is more than 50 percent leased out, which is quite a good occupancy rate. Especially companies from the financial sector, lawyers, tax advisors and consultancies are interested in office space in the building.
We are also targeting European oil and gas companies. These kinds of premium clients particularly appreciate the discretion and comfort of work in smaller and prestigious office buildings such as the Lipiński Passage.
Is there a lot of demand for this kind of office product in Warsaw, a city where there is not much office space in renovated historical buildings?
There are not so many addresses in Warsaw that combine high-class office space with the character of a historical building, and most of the existing buildings of this kind are located in the city’s Old Town area.
Lipiński Passage provides tenants with office space in a building with a truly historical character that is located in the central business district, right next to the Warsaw Central railway station, the Złote Tarasy shopping mall and the Marriott Hotel.
From Warsaw Business Journal by Adam Zdrodowski
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