HB Reavis has announced it refinanced the Varso Place project in Warsaw for a five-year term for a total of GBP 445 million, with the existing credit consortium of five banks being supplemented by PKO Bank Polski and Erste Group Bank, allowing an increase of GBP 31 million in financing on improved terms.
According to the developer, the existing, record-breaking GBP 415 million loan was refinanced with two facilities – one for GBP 225 million for Varso Tower and one for GBP 220 million for the Varso 1 and Varso 2 office buildings.
The consortium includes seven banks: Santander Bank Polska – Loan Agent (GBP 87 million), Helaba (GBP 87 million), Bank Pekao S.A. – Security Agent (GBP 78 million), Berlin Hyp (GBP 35 million), Deutsche Hypo – NORD/LB Real Estate Finance (GBP 35 million), PKO Bank Polski (GBP 75 million), and Erste Group Bank AG (GBP 48 million).
“A project of such scale and prestige requires the involvement of large and credible financial partners,” commented HB Reavis CFO Tomas Krajcir. “Their trust and improved conditions within financial markets allowed us to increase the financing amount from GBP 415 million to GBP 445 million and enabled us to secure better financing terms. This transaction also underscores HB Reavis’s position in the region as a strong European player in the design, construction, and management of real estate.
“Participation of PKO Bank Polski in the finance consortium for Varso Place demonstrates our dedication to supporting premier commercial developments and confidence in their long-term prospects. Varso Place is one of the most modern and sustainable projects in Poland, which is evident in the strong interest from tenants in the office sector,” added PKO Bank Polski Head of Property Finance Agata Gola. “By supporting such investments, we affirm the strategic direction of the real estate market, driven by innovation, sustainability, and excellence.”
“On behalf of the banks financing the project since 2018, we are pleased to welcome PKO Bank Polski and Erste Group Bank AG to the consortium,” said Santander Bank Polska Head of Corporate Property Finance Department Brendan Long.
Located in Warsaw, Varso Place consists of three multifunctional buildings with office and retail/service space, totalling 144,000 square meters of lease area. In 2022, the latest addition, Foster + Partners’ 310-meter tower Varso Tower, was completed.
Tenants of Varso Tower include Alior Bank (as reported by CEE Real Estate Matters on February 4, 2025), Baker McKenzie (as reported by CEE Real Estate Matters on January 23, 2025), and CMS (as reported by CEE Real Estate Matters on October 5, 2021).
In the transaction, banks were advised by DLA Piper and Arcadis.
Image source: hbreavis.com