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Investment Transaction Case Study
Buyer sourcing and end-to-end transaction management, from market analysis and the preparation of investment materials to negotiations and closing.
Confitendial Client
Real Estate
3 599,33 sqm
Warsaw
Project overview
A secure transaction with an established income stream
Walter Herz supported the client in the acquisition of a commercial property with an existing tenant in Warsaw. The advisory scope covered the legal, financial and technical assessment of the asset, review of the lease terms, and coordination of a complex transaction involving multiple stakeholders.
Challenges
Stable tenant. Complex transaction. Multiple areas of risk
The key challenge was to carry out a comprehensive assessment of an income-producing property. The process required a simultaneous review of the existing lease agreement, the tenant’s financial standing, the technical condition of the property and the overall investment rationale.
Tax and legal considerations related to the transaction structure were also an important part of the process, including VAT and Polish tax on civil law transactions (PCC). At the same time, it was essential to ensure continuity of the tenant’s operations throughout the change of ownership.
An additional challenge was coordinating multiple parties involved in the process, including the buyer, seller, tenant, banks, legal advisers, tax advisers and technical consultants, while maintaining a consistent negotiation and closing timetable.
Solutions
Comprehensive due diligence before the investment decision
Walter Herz coordinated the due diligence process across the key areas of risk associated with the acquisition.
The lease documentation and the tenant’s financial standing were reviewed, while independent technical experts assessed the condition of the property, the fit-out standard and the performance of its building systems and installations.
In parallel, the team analysed projected cash flows, NOI, the applicable capitalisation rate and relevant market benchmarks. Working closely with legal and tax advisers, an appropriate and secure transaction structure was developed.
A dedicated Walter Herz team coordinated the negotiation timetable and communication between all parties involved, while also ensuring a smooth ownership transition from the tenant’s perspective.
benefits
Verified asset. Stable income. Controlled risk
The transaction was successfully completed without disrupting the tenant’s business operations, enabling the new owner to acquire an income-producing property with a stable revenue stream secured by an existing lease.
Comprehensive due diligence and appropriate transaction structuring helped mitigate legal, tax, financial and technical risks, while improving the overall predictability of the investment.
Clear transaction terms and appropriate safeguards for the parties enabled an efficient transfer of the asset while maintaining a positive relationship with the key tenant.
The team responsible for the project
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Katarzyna Tencza
Transaction Director
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Damian Karkosiński
Investment and Acquisition Specialist