Office Investment: CH8 Tower, Central Warsaw, Poland

– Group Property
– Purchase (Dec 2014): €35.90m
– Sale (April 2020): €44.00m
– Profit: £1.73m
– Hold period: 5.5 years
– IRR: 63% per annum (levered)

In April 2020, just as the international coronavirus crisis set in, we completed the sale of our largest asset, Chałubinskiego 8 (CH8), an office tower in central Warsaw. The sale was agreed in December 2019 and generated a profit of €1.6 million (c£1.4 million) after costs and after a provision of €2.67 million (£2.3 million) in respect of a rent guarantee provided to the buyer of the property. The net cash received by the Group amounted to some £16.7 million, increasing total Group cash to more than £20 million, representing over half the Company’s market value at the time.

Information on the tax strategy being implemented.