Revetas Capital has announced plans to convert its office development portfolio in three major cities in Poland into residential, marking its entry into the Private Rental Sector (PRS).
The projects, which involve rouhly 90,000 m2 developable gross lettable area, are expected to provide a capacity of up to 2,000 beds. The objective of the conversion is to build an institutional PRS portfolio in major Polish university cities, Revetas said.
‘The Polish PRS market presents attractive rental yields to investors of approximately 5% compared to 1.3%-3.3% in major Western European cities,’ commented Eric Assimakopoulos, founding partner of Revetas Capital.
The company said that the decision came in response to post-Covid market trends and increasing organic demand in the sector. The strategy will focus on delivering long term products, with an emphasis on sustainability during the construction and operational phases.
The seed pipeline includes four projects that Revetas already owns through its managed funds in Warsaw, Krakow and Katowice.
The first project, B4B Meadows in Krakow comprises 435 apartments and is positioned in the same area with over 76,500 m2 of class-A office complex Bonarka for Business “B4B”, a dominant 90,000+ m2 shopping centre, as well as an attractive residential area. The B4B Meadows development is currently under permitting. Subsequent projects in Krakow, Katowice and Warsaw are currently undergoing pre-permitting and design works.
Eric Assimakopoulos said: ‘Our thematic approach currently is focused on logistics and industrial for which we launched several key projects as well as PRS and hospitality across Europe, based on solid demand drivers. Revetas Capital is uniquely positioned to deliver the PRS portfolio as an experienced, vertically integrated investor and developer of real estate Europe-wide, successfully managing institutional capital over the past 25 years.’
