Army surplus
It is a common misconception, that the Military Property Agency (AMW) has nothing but eyesores on offer. The agency's list of properties does of course include deserted hangars and warehouses, some of which require radical renovation, but these are not the only assets being sold.
And less attractive properties could still offer a profitable return on an investment. Among the neglected structures are a number of historically significant buildings which could be adapted to serve both cultural and commercial purposes. Other military properties could be transformed and used for storage, manufacturing, retail, service, office space, recreational or even residential purposes.
Miles of airstrips
According to the data Lokale Immobiliaobtained from AMW, the agency's stock is dominated by airfield infrastructure - real estate that was, and could still be, used for airports and airport facilities. With both regional authorities trying to attract low-cost carriers to improve their towns' status, and airlines looking for new destinations possibilities, these airports can be an idea to ponder upon.
One example is a 467-ha military airfield located in Nowe Miasto. Situated some 2.5 km away from the town center, and some 30 km from the road connecting Warsaw to Kraków and Katowice, the airfield is located close to the road junction leading towards Warsaw, Radom, Kielce and Łódź. The asking price is still to be determined.
Another location is a former military airfield in Maków Płoty, about 70 km from Szczecin. It is located close to the Szczecin-Gdańsk highway. The tender price is just zł.12,000.
Of course not all of the former airfields have to remain airports under new ownership. In local spatial development plans, these areas have been designated for wind power plants, industrial and agricultural processing, or agrotourism infrastructure.
Fortress for sale
In the late fall, AMW plans to announce a tender for Modlin Citadel - a 55-ha, 2.5-km long building, which is located inside Modlin Fortress in Nowy Dwór Mazowiecki, some 30 km away from Warsaw. Modlin Fortress is a large military site featuring a ring of fortifications both within and without.
Built on two islands located at the confluence of the Bugo-Narew and Vistula rivers, the fortress is a unique example of defensive architecture. Its construction was started by order of Napoleon Bonaparte in 1806. The new owner will have the right to get a 50-percent rebate, since the fortress and citadel are listed in the Historical Registry. The price is zł.200 million.
Plots, both near and far
AMW has a number of villas located in relatively remote areas. These historical buildings could be transformed into conference centers with banquet halls and hotel rooms, for example. In Międzyzdroje, in the northwest of the country, there is an old holiday guest house, close to the beach, which is available for zł.1.2 million. Similarly, old barracks in Kołobrzeg are listed for an asking price of zł.2.1 million.
According to the information Lokale obtained from AMW, the most difficult task is to sell former military firing ranges and other such areas, as these have no access to water or gas and need to be land-surveyed. On the other hand, properties in cities whose populations top 200,000 draw the most attention.
One such property is a 5.7-ha plot covered with warehouses in Warsaw's Targówek district. The plot, whose facilities offer a combined usable floor area of approximately 13,500 sqm, is situated on ul. Szwedzka near a Tesco supermarket and a theater.
Profitable transactions
The agency keeps some money from sales to fund its own budget. Around 93 percent of the income from property sales goes to funds for military modernization and public safety. The remaining seven-percent supports the agency.
"Every year the Military Property Agency sells as much property as is necessary to keep up with its financial plans. In recent years the plans were set for zł.200-250 million and were fulfilled," said Zbigniew Prokopczyk, head of real estate management unit at AMW. "Since its founding [in 1996], AMW has sold property worth a total of approximately zł.1.5 billion," he added.
The majority of the buyers of such real estate are private investors and development companies. "Lately we have noticed a major decrease of interest and fewer transactions with local-government authorities," explained AMW's Prokopczyk.
There is good money to be earned from the sale of military land. A 108-year-old laundry building neighboring the Modlin Fortress went for zł.3.15 million. The new owner did not want to reveal plans about the property, but the site is well-suited for a restaurant, hotel or conference center. According to city development plans, the terrain may be used for tourist purposes as well as for parks.
The most profitable transaction so far was the sale of a property in Wrocław. The 11-ha piece of land carried a hefty zł.56-million price tag.
Additionally, in late April, the AMW was close to earning zł.50 million from the sale of an exceptionally attractive piece of real estate - military barracks on the Hel peninsula, which consisted of 15 buildings on 4,000 sqm of land in close proximity to the sea. The company which bid for the land did not finalize the transaction so the plot was put on sale again.
As Locus Nieruchomości's Gabler said, "I am sure that there are plenty of ideas about what to do with [various] former military property. If one has money, the possibilities are endless."
