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London property investor acquires eye-catching €23m Krakow office tower

First Property Group, the London and Krakow-based property investment fund, has acquired a brand new Krakow office tower for €23m.

The deal for the eye-catching Pilot Tower has been part funded from a bank loan of up to €15.9m along with €7.5m in cash which has been committed by two family offices, a Cambridge college and unnamed additional clients of the property investment firm.

Located in the heart of the southern Polish city, the building has only recently been completed and boast 10,000m sq of Grade A office space, along with 400m sq of commercial facilities.

First Property said that it expects to earn a pretax profit of €1.16m per annum on the building, along with ongoing management fees of €220,000.

Ben Habib, Group Chief Executive at First Property, commented: “I am very pleased by the investment made by our clients and ourselves in this striking new office building in Krakow, Poland.

“It is in a prime location, boasts state-of-the-art facilities and is fully let at rent levels that offer room for growth in due course.”

Completion of the deal is expected to take place in the second quarter of this year once the investor has received a ruling on the tax treatment of the agreement.