New Work, a Hungary-based serviced offices provider, continues its expansion in Poland by making moves to the regional city markets. Supported by real estate advisory firm Savills, the company will open two new locations: in Łódź and in Krakow.
One of New Work’s two new locations will be building H in Bonarka for Business (B4B), one of the most popular office complexes in Krakow located just right at Bonarka City Center shopping mall. Building H, the 8th element of B4B, has just been officially handed over, extending the office complex to over 75,000 sqm of modern office space. With Bonarka City Center nearby, the amenities, which B4B can offer includes 250 shops, cafes, restaurants, services, cinema and also medical clinic, private children’s day care, and fitness club in house. New Work will occupy almost 2,800 sqm.
New Work’s another location will be Hi Piotrkowska 155 in Łódź. New Work will occupy four floors in the tower building as well as a conference and meeting centre on the ground floor, totalling nearly 5,000 sqm. The tower constructed as part of the project will be the tallest office building in Łódź. The entire development, which will comprise two office and service buildings, and a Hampton by Hilton hotel is planned to be delivered by Q2 2020. The developer and investor of the project is the Master Management Group.
New Work provides fully furnished and equipped offices for corporates and small and medium-sized enterprises looking for modern workspaces on flexible lease terms. Its serviced offices in Poland are currently available in Warsaw at Wilanów Office Park (3,200 sqm), Neopark (2,500 sqm) and Kaleńska 5 Business Center (1,600 sqm). New Work will soon open a 4,000 sqm office at Warsaw’s Wola Retro building, which is nearing completion. Its only location outside the capital so far is Imagine in Łódź (2,000 sqm). It is scheduled for opening this autumn. The serviced offices provider is planning to continue to grow both in Warsaw and in the regional cities.
“We are the only flex space provider born and raised in Central Europe which is covering all major CE markets. Over the last five years New Work has been growing by 100 percvent year by year and we intend to keep this pace. In Poland we are consistently adding new offices to our network to be able to offer prime locations in all relevant cities to our clients, and are now opening our second office in Łódź. Despite being a newcomer to Krakow’s market, we are already in the process of choosing another location there. By the end of this year we want to provide a total of 50,000 sqm of office space. The portfolio consists of 25 locations in five countries and seven cities in the CE region, and we are aiming for 100,000 sqm,” said Hubert Abt, CEO, New Work.
In order to finance this growth New Work converted last year to a company on shares and established its equity on €3 million. “We have just closed funding for the Series A shares and started Series B now. With this we should be able to increase our equity stock to almost €10 million by the end of Q3 2019,” added Hubert Abt.
Savills advised New Work on both transactions. In addition, the firm recently represented the tenant in lease negotiations outside Poland, including in office space leases at Dynamica (3,000 sq m) and Rustonka (1,700 sq m) in Prague, advised by the Czech Republic team and at AFI Tech Park (2,800 sqm) in Bucharest, advised by Crosspoint, Savills associate in Romania.
“The rapid growth in serviced offices and coworking spaces has so far centred on Warsaw. However, today it is the regional cities that boast the strongest growth potential. At the end of the first quarter of 2019, Krakow’s office buildings offered 17,700 sqm of flexible office space, nearly seven times less than Warsaw’s stock, while Łódź had just 1,800 sqm. Looking ahead, this will change – thanks to New Work. The provider has chosen high quality office buildings in prime locations in both cities which will certainly become sought-after destinations,” commented Jarosław Pilch, Head of Tenant Representation, Office Agency, Savills in Poland.