Develia has signed a property sale agreement with Vastint Poland for the property where the multifunctional Arkady Wrocławskie building is located. The net transaction value amounts to €42.967 million.
Arkady Wrocławskie is a mixed-use retail and office complex commissioned in 2007 and located in Wrocław, within the area enclosed by Powstańców Śląskich, Swobodna, Komandorska and Nasypowa streets. The agreement between Develia and Vastint Poland covers the sale of the land together with all associated multifunctional buildings. The complex is currently undergoing demolition.
“By finalising the sale of Arkady Wrocławskie, we have accomplished one of our key strategic objectives – the divestment of our office and retail portfolio. In recent years, this strategy has allowed us to reinvest capital in the development of our core residential business, both through organic growth and M&A activity, significantly increasing our market share,” says Andrzej Oślizło, CEO of Develia. “I am pleased that a new project on the site of Arkady Wrocławskie – for many years an important landmark for the capital of Lower Silesia residents – will be developed by an investor with extensive experience in mixed-use projects. This will enhance the attractiveness of this part of the city,” added Andrzej Oślizło.
“The sale of Arkady Wrocławskie aligns fully with Develia’s investment policy. Proceeds from the transaction in the amount of EUR 26 million will be allocated to repay the loan previously secured to prefinance the property. We want to reinvest the remaining amount in the residential segment, which will provide us with higher rates of return. That will be possible shortly, thanks to the finalisation of the acquisition of Bouygues Immobilier Polska,” says Paweł Ruszczak, Vice President of Develia.
The demolition of Arkady Wrocławskie, initiated by Develia and now in progress, includes the removal of external elements of the complex. The process will be continued by Vastint Poland. The new owner plans to develop a modern mixed-use complex on the acquired site.
“For many years, Arkady Wrocławskie served as a central hub for meetings, shopping, and cultural events, playing a significant role in the commercial landscape of Wrocław. Today, we are entering a new chapter in the story of this place. Our plans involve the demolition of the existing complex and the development of a modern, multifunctional project. Carefully designed and seamlessly integrated into the urban fabric of the city centre, the new development will bring lasting value to the local community. It will attract both residents and businesses, creating a vibrant space for living, working, and leisure,” says Roger Andersson, Managing Director of Vastint Poland.
Vastint Poland has previously developed in Wrocław, among others, the Business Garden office complex and the B10 office building with the Element by Westin hotel.
Develia was advised by Dentons on legal matters and by Avison Young on commercial aspects of the transaction. Legal support for Vastint was provided by Legal Kraft.
