The Catella European Residential (CER) Fund has acquired a mixed-use development project of residential apartments and student accommodation in the Polish city of Kraków for around €20 million from U.S. developer Hines.
Viktoria Hoffmann, Investment Advisor for Catella European Residential, said: “Catella Residential’s third investment in Poland and our first outside Warsaw, brings further pan-European diversification to CER and means the fund’s total assets under management have now hit €1.5 billion. Kraków is Poland’s second largest city and not only a major tourist destination, it is also the place where the fast-growing business process outsourcing industry is increasingly choosing to locate. BPO companies occupy more than half a million square metres of offices in Kraków.”
The 154 new apartments and 139 student units purchased by CER, which is managed by Berlin-based Catella Residential Investment Management (CRIM) and Catella Real Estate AG (CREAG), are part of a large new residential development scheme constructed by Hines and located close to the old city centre and market square.
The residential apartments extend over two buildings, with the student accommodation in a third, and all are characterised by modern architectural design with large windows, balconies and terraces. The new developments have been completely finished and partly fitted out, with the first occupants moving into their new homes in January. The three CER buildings will operate in the future under the collective brand “Trio Kraków.”
Dariusz Węglicki, Daweg Asset Management and the Catella Residential IM partner in Poland, concluded: “Kraków is one of the fastest expanding cities in Poland, attracting young people from around the country and neighbouring states to study and work. The city has some of Poland’s best universities and the growing number of jobs in the BPO sector are also a big draw.”