City living for foreigners

By the end of the year, Skarbiec TFI, a subsidiary of the Skarbiec Asset Management Holding, will launch a new real-estate investment fund targeted at foreign investors. The company has already received the green light from the Polish Securities and Exchange Commission (KPWiG) to launch City Living Polska (CLP) FIZAN, which will invest in buy-to-let properties.

"The City Living Polska fund will enable foreign investors to participate in the economic effects of the prosperity on the residential market in Poland," said the deputy president of Skarbiec TFI's management board, Piotr Kuba. "Skarbiec TFI will be managing the fund, through investment in the residential market and the administration of the rental process with the flats owned by the fund. Foreign investors perceive a large potential in this market sector, so we expect a significant interest in the fund's certificates during the subscription." 

Skarbiec TFI will direct the certificate acquisition offer to the institution of collective investment called Poland Geared Growth, which has already signed a cooperation agreement with Skarbiec TFI. Skarbiec TFI will cooperate with the London-based Curzon Capital Ltd when it comes to  subscriptions for City Living Polska FIZAN investment certificates.

Preparations for CLP's share issue are under way and the assets are expected to close at zł.60 million. Kuba said that the bulk of the fund's investments will be focused in Warsaw. Skarbiec TFI admits it is a "trouble-maker" for KPWiG -  the company has already registered Skarbiec Rynku Nieruchomości FIZ (a real-estate fund), with zł.61.8 million in assets, and has obtained KPWiG's agreement for the new securitization fund, which will acquire irregular receivables from banks, telecommunication and insurance companies. The funds will be the first master-feeder type fund in Poland.

With zł.9.36 million in gross profit, Skarbiec TFI has generated the greatest profits of all companies within the Skarbiec Asset Management Holding. After the first half of 2006, the assets managed by Skarbiec TFI exceeded zł.3 billion. In June, Skarbiec TFI's market share  increased to 3.8 percent. "The first half of 2006 is the first semester in the last three years when our market share increased," said Kuba. The largest part of the market is in the hands of Pioneer Pekao, which holds 26 percent of the pie.

Agnieszka Barteczko