Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, October 19, with Winston Norman, Editor and Chief of EuropaProperty.com.
Revetas Capital enters the PRS market in Poland
Revetas Capital is entering the Polish private rental sector (PRS) by converting its prime office landbank portfolio in three Polish cities into residential. The pan-European real estate investment manager said the “decision came in response to post-COVID market trends and increasing organic demand in the sector”.
The office landbank portfolio is expected to provide up to 2,000 beds. The seed pipeline includes 4 projects that Revetas already owns through its managed funds in Warsaw, Krakow and Katowice.
The first project is B4B Meadows in Krakow, comprising 435 apartments. Subsequent projects are currently undergoing pre-permitting and design works.
Eric Assimakopoulos, the founding partner of Revetas Capital, said: “In Poland, the estimated 1.5 million apartment shortage presents a strong organic demand, underpinned by a 38 million-plus population, a growing urbanisation rate of 60 percent vs. 72 percent average in the rest of the EU, one of the highest overcrowding ratios across Europe, and increasing demand for rental versus buying.
Assimakopoulos said the Polish PRS market presents attractive rental yields to investors of approximately 5 percent compared to 1.3 to 3.3 percent in major Western European cities.
GLP expands operations in southern Poland
GLP has acquired a 60,000 sqm logistics centre in Bieruń from SPM. The seller will lease the building back for another ten years.
SPM is the largest logistics provider of its kind for the automotive industry in Poland. The Bieruń centre is used by SPM as the main logistics facility and a back office.
Marek Jandous, Investments and Asset Management Director CEE at GLP Europe: “This transaction speaks to GLP’s ability to not only deliver new projects as a developer but also to invest in attractive, move-in-ready properties in the best locations.”
DL Invest developing new warehouse investment near Warsaw
DL Invest Group is developing the next stage of the DL Invest Park Teresin investment near Warsaw. Another warehouse of over 28,000 sqm is being built on the complex. In the newly built warehouse, 14,400 sqm will be occupied by Dr Max, a leader in the pharmaceutical market. The facility is scheduled to be put into service at the turn of the third and fourth quarters of 2023.
“The contract with Dr Max is a model example of our investments based on a unique business model,” commented Dominik Leszczyński, CEO of DL Invest Group.
DL Invest Group in the warehouse area is financed, among others, thanks to the company’s cooperation with the EBRD, which provided financing to DL Invest Group in the amount of €72 million and Macquarie Capital Principal Finance, which provided the company with €123.4 million in financing.
