Cybernetyki Office Park | Celtic Property

MOTOKÓW-WARSAW

At the time of purchase in 2005 the property comprised:

A Two modern warehouse buildings with a total area of approx. 5,000 m2 and two older warehouse buildings (demolished after purchase) with a total area of approx 2,000 m2 (portion of purchase price for total area occupied by warehousing – €4 mln).
B Two modern warehouse buildings with a total area of approx. 5,000 m2 and two older warehouse buildings (demolished after purchase) with a total area of approx 2,000 m2 (portion of purchase price for total area occupied by warehousing – €4 mln).
C Investment site with valid building permit for two office buildings (subsequently developed as Helion and Lumninar) with a total area of approx. 14,650 m2 (portion of purchase price – €2.7 mln ).

The property was developed as outlined in the following 4 sections.

Purchase Date	August 2005
Purchase Price	€9,7 mln (split as above)

PHASE ONE – RESIDENTIAL SITE

One of the main reasons that the Cybernetyki office park was attractive was that we were fairly confident of converting part of the site to residential use as a neighbor had successfully applied for such consent on adjacent land. Celtic applied for a change of planning status for the rear of the Cybernetyki Office Park Site for ca. 4ha of land.

Outline planning permission for 77,000sq.m of residential development was secured and the site was sold to Layetana in May 2007.

Purchase Price (portion of larger price paid for whole Park)	€ 4 m
Project Budget	€ 500,000
Sale Date	May 2007
Sale Price	€ 24 m
Sale Price per useable m²	€ 330 per sq.m of buildable apartments

PHASE TWO – HELION OFFICE BUILDING

Having sold the rear portion of the site to the Spanish residential developer Layetana, we used the profit to amend and renew the building permit for the front of the site in order to develop the Helion office building.

Construction began in August of 2006 and was completed in August 2007 providing 9,030 m² over seven floors.

The building was fully leased in 2007 to Skandia, Tele 2, Wola Info, Gerber, and Royal Unibrew.

In December 2007 Helion was sold to the German investment fund Deka Immobilien releasing a sizeable profit

Purchase Price (Portion of larger price for whole park)	€ 1.6 m
Development Budget	€ 13,3 m
Sale Date	December 2007
Sale Price	€ 25.5 m
Initial Yield	6 %
Purchaser	Deka Immobilien

PHASE THREE – LUMINAR OFFICE BUILDING

Having sold the Helion building to DEKA we managed to secure a forward sale of the next phase, the 5,520sq.m Luminar office building.

Construction began in August of 2007 and was completed in August 2008.

The building was 100% leased for 10 years in 2008 to BRE Bank.

In August 2008 Luminar was sold to the German investment fund Deka Immobilien releasing a good profit.

Purchase Price (portion of larger price for whole park)	€ 1.025 m
Development Budget	€ 9.6 m
Sale Date	September 2008
Sale Price	€ 17 m
Initial Yield	5,85 %
Purchaser	Deka Immobilien

PHASE FOUR – SOLAR OFFICE BUILDING

This left the 5,855 m2 Solar building which had been constructed in 1998 and which provided B class space to the market and was looking very tired and dilapidated.
The property was renovated in small phases from 2008 and fully re leased to a number of tenants including Medicover, Beko, Berlin Chemie, Lily Moly, ZPUE, Bard, and Styropol.
The property currently produces a net income of €860,000 pa.

Purchase Date	2005
Purchase Price	€ 3 m
Redevelopment Budget	€ 500,000
Net income pa	€ 860,000
Valuation December ‘12	€ 7.9 m