Revetas Capital enters the PRS sector 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: “Our thematic approach currently is focused on logistics and industrial for which we launched several key projects as well as private rental sector and hospitality across Europe, based on solid demand drivers.

“In Poland for example, the estimated 1.5m 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. Such factors determine a highly adaptable investment focus, with a deep understanding of local markets from our 110 team of professionals “on the ground”.

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.