Italian property company Pirelli Re said it has exercised an option on 720,000 m[sup]2[/sup] of buildable land in the Polish capital Warsaw, which it will contribute to an urban development initiative. Pirelli has a 34% stake in the project.
Italian property company Pirelli Re said it has exercised an option on 720,000 m2 of buildable land in the Polish capital Warsaw, which it will contribute to an urban development initiative. Pirelli has a 34% stake in the project.
The land acquired has a book value of EUR 90 per m2, or a total of EUR 64.8mln, and was acquired from the Lucchini family. The Lucchini family will also own 15% in the urban development initiative, which should see the construction of about 8,400 eco-sustainable apartments, while Grove International Partners will be the majority shareholder in the initiative with a 51% stake.
Pirelli RE is already working with Grove in Poland on seven other real estate developments for a total of about 4,200 apartments. Pirelli Pekao will handle management of the project. Pirelli RE has 75% of Pirelli Pekao while lender UniCredit Group's Bank Pekao owns 25%.
Pirelli RE noted that the housing market remains strong in Poland's most important cities despite the financial crisis. It said the investments will have no impact on its net financial position.
