Eastnine acquires office property in Poland

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Eastnine has acquired a newly built office property in Poznan, Poland for EUR 120.6m. The acquisition means that the profit from property management in the Earning Capacity increases by 45 per cent to 16.1 MEUR. With the deal, Eastnine makes its entrance as a property owner in Poland.

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The acquired property Nowy Rynek D has been taken into possession. Nowy Rynek D, which comprises a total of 39,000 sq.m. of lettable area and 261 parking spaces in an underground garage, was completed by the seller Skanska in 2021. The property is leased to 96.5 per cent and rent for the remaining areas is guaranteed by Skanska. Nowy Rynek D houses the head office of the anchor tenant Allegro, one of Europe’s leading e-commerce companies. Allegro operates Poland's largest e-commerce platform, which is also the largest globally of European origin. Allegro rents above 26,000 sq.m. and other tenants include Danish Rockwool International and German Arvato. The average remaining lease term, to maturity, is 6.7 years. The property is expected to receive the sustainability certifications LEED Platinum and WELL Silver in 2022.


“It feels very exciting to be able to acquire such a prestigious property located in one of Poland's larger regional cities. We are entering a new market with great opportunities”, says Eastnine's CEO Kestutis Sasnauskas.


The property is in a good location in the center of Poznan, close to both the central station and the old town. Nowy Rynek D is the third and largest property in the Nowy Rynek project, which is being developed by Skanska. The two previous properties have been acquired by Franklin Templeton and Corum Asset Management, respectively. Another property is under construction by Skanska in the area. Poznan is the fifth largest city in Poland, located midway between Warsaw and Berlin. The city has close to one million inhabitants in the metropolitan area and a vital business community as well as several major universities.


Eastnine’s Earning capacity

The acquisition means a boost for Eastnine's cash flow and earnings. The annual rental income from Nowy Rynek D amounts to EUR 7.5m and Eastnine’s profit from property management in the Current Earning Capacity increases by 45 per cent to EUR 16.1m.


CURRENT EARNING CAPACITY, EURm March 31, 2022 + Nowy Rynek D March 31, 2022 Change, %
Rental value 35.5 27.9 +27
Less vacancy value -2.5 -2.5 0
Sum rental income 33.0 25.4 +30
Property expenses -3.0 -2.9 +3
Net operating income 30.0 22.5 +33
Central administration expenses -3.8 -3.8 0
Interest expenses -9.9 -7.5 +32
Other financial income and expenses -0.2 -0.2 0
Profit from property management 16.1 11.1 +45

The acquisition also means broadening the financing base. The acquisition is financed through a green loan from Berlin Hyp, one of the leading German real estate banks, and with cash and cash equivalents. 


Eastnine AB (publ)


For more information contact:

Kestutis Sasnauskas, CEO, +46 8-505 97 700

Britt-Marie Nyman, CFO and Deputy CEO, +46 70-224 29 35

Visit www.eastnine.com


Eastnine AB is a Swedish real estate company with a property value of EUR 471m and a long-term net asset value of EUR 357m as of 31 March 2022. Eastnine’s vision is to create and provide prime venues where ideas can flow, people can meet, and successful business can be developed. The mission is that Eastnine shall be a leading, long-term provider of modern and sustainable office and logistics premises in prime locations in the Baltics and Poland. Eastnine is listed on Nasdaq Stockholm Mid Cap, sector Real Estate.


This information is information that Eastnine AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 12.05 p.m. CET on 6 May 2022.