Overview
SIGNAL completed a structured lending investment in a newly developed, 59,000 sqm prime office tower in central Warsaw, in partnership with a leading European developer. The asset was approximately 97% leased to a diversified base of high-quality national and international tenants and benefits from BREEAM Outstanding and WELL v2 Platinum certifications, alongside advanced AI and mobile-enabled building management systems. The investment was exited ahead of plan following the Sponsor’s successful sale of the asset.
Investment Details
- The investment was structured as preferred equity with a 15% per annum current-pay preferred return, paid quarterly.
- A minimum return hurdle of 1.30x was embedded in the structure.
- Financial covenants included a stepped loan-to-value profile and debt yield requirements.
- Additional security was provided through pledged shares in entities holding two other prime development sites in Warsaw.
Investment Rationale
- Best-in-class asset: Prime office tower in Warsaw’s CBD with market-leading ESG credentials
- Strong tenant profile: Occupied by high-quality national and international covenants
- Downside protection: Investment made below replacement cost, supported by robust covenants and additional collateral
- De-risked structure: Current-pay preferred return, guaranteed income and corporate guarantees
- Strong outcome: Full repayment and minimum return achieved within 10 months, generating significant profit for the fund
Reading Signals.
Finding Value.
