First Property Group has negotiated leases for 2,691m2 of its office building in Gdynia, Poland, accounting for 20% of the net internal area (NIA) said the property fund manager in an announcement on Friday.
Due to lockdowns in the pandemic, the property was 98% vacant which impacted the write-down in March 2021 and resulted in the carrying value of this building being reduced to €16m.
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Tenants are now responsible for around €500,000 in rent and service charges every year. This is around half of the building’s running costs.
When completely leased, the building is expected to generate €2.5m in rent and service charges per year.
The District Court in Gdynia is the main tenant, accounting for 15% of NIA and occupies the entire first floor.
The establishment of the court is expected to lure more legal consultants and practitioners to the building, according to First Property.
The building is located at 21 ul. Podolska is in prime central Gdynia, Poland’s second-largest seaport after Gdansk, and spans around 13,400 m2 of NIA.
The Port of Gdynia has had significant investment in recent years, and it is currently being expanded to accept Baltimax vessels, with associated investments in road and rail infrastructure.
First Property Group shares were trading up 1.5% to 33p in early morning trade on Friday as the group announced the inking of the leases.