The purchase agreement for the entire residential building has been finalized. The symbolic handover of the keys took place on 9 April 2018 TPA Poland experts advised the buyer on this transaction.
The purchase of the entire residential building from the developer in the forward funding formula by a foreign fund managing a housing portfolio for lease is the first transaction of this type in Poland. The entire process required a great amount of effort and the first results were already seen on July 19, 2017 when the preliminary contract was signed.
In TPA Poland, the real estate transactions are part of our everyday life, both on the Polish and foreign markets. However this was a special project, pioneering on the Polish market of institutional lease. We are glad to have obtained the trust of the investor, which allowed us to expand our know-how and gain valuable experience. Cooperation in the sale of the Pereca Apartments gave us a chance to show how versatile our offer is in terms of consulting. We hope that this is the first of many more transactions of this type to come.
– says Małgorzata Dankowska, a Partner at TPA Poland,
What exactly did the transaction involve? The Pereca Apartments is a building with a total area of 9500m2 with 193 flats and a retail and service area on the ground floor of the building. The value of the transaction nears to PLN 100,000,000. The whole process followed the formula of forward funding financing, which means that the Bouwfonds Investment Management fund, which is purchasing the property, is also the party financing the investment process. In turn, Matexi Polska. was the entity which carried out the development process until it has been completed. The agreement of July last year provided that the completion of the project will occur 24 months from the day of signing the contract. However, the project was completed over 3 months prior to that date.
The sale of the Pereca Apartments may be a barometer indicating the direction of the real estate market expansion in Poland. We intend to spread our knowledge and experience gained, among others, in our report dedicated to the sector of institutional lease – Private Rental Sector. Other investments mean development for the industry and the entire market, as well as various legal and tax consulting services.
– concludes Małgorzata Dankowska.