Warsaw’s iconic Cedet building sold for 129.5 million euros

The iconic Cedet building, located in central Warsaw, has been sold to Korean investors for 129.5 million euros.

Cedet (Central Department Store) was originally built between 1948-1952, designed by Polish architects Zbigniew Ihnatowicz and Jerzy Romański. The building was considered to be one of the most modern buildings in the capital at the time. It was also home to Smyk, the largest toy and children’s clothing store during communist period. Since then the building has seen rough times, including a fire in the 1970s that destroyed most of the building. Immobel Polska, part of the Belgian Immobel Group, purchased the building in 2015.

“We are delighted with the development and the sale of this emblematic building which combines heritage and modernity to such a reputable investor. This is a great recognition of the efforts made by our teams in recent years,” said Jacek Wachowicz, CEO of Immobel Polska, adding that the sale of this building will make a significant contribution to Immobel’s results for the year 2018.

“Warsaw’s real estate market is particularly attractive because the country’s GDP grew by 4.6 per cent in 2018, which is more than double the figure for Europe as a whole. Positioned as the region’s financial centre, a large number of international companies are relocating to Warsaw, attracted by this growing market. This trend accounts for the rise in demand for office space, which totalled 632,000 sq m for the first three quarters of 2018,” read an Immobel statement.

“The Cedet building is ideally situated in central Warsaw, in the very heart of the central business district and the commercial area of the city, with abundant transport access and amenities. The building has regained its former glory after three years of restoration works. Immobel has upgraded this stunning building brimming with historical and cultural significance. It also meets the strictest environmental criteria, with BREEAM, the building research establishment environmental assessment method, having certified Cedet as excellent,” continued the Immobel statement.

The building has been extended and now offers over 22,000 sq m of space, which has been split into over 15,000 sq m of office space and 7,000 sq m of commercial space.

The entire office space was let even before the building restoration was completed in July 2018.

“The professional way in which the difficult restoration, letting and sale of the landmark building has been managed demonstrates the high quality of the teams, headed by Jacek Wachowicz, in place at Immobel. Their work is making a positive contribution to the expansion of the Polish market as well as to the group international reach,” says Alexander Hodac, Immobel Group’s CEO.

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Photo: Immobel Polska