Diana sold
MaMaison, part of the Orco Property Group, which specializes in upscale extended-stay hotels in Central and Eastern Europe made the purchase. Orco Property Group is an investor, developer and asset manager in the Central European real estate market whose portfolio also includes the Endurance Fund and the Orco Hotel Collection. International real estate advisory company, Colliers International, represented PBK Property in the deal.
The Diana Passage, scheduled for completion in January next year, is a multi-use project that offers approximately 8,500 sqm of total space and 5,000 sqm usable space in a newly-built, period style building. The office space has been leased for 10 years to the Goethe Institute and the German Book Information Center. The residential part, which will be operated by MaMaison, consists of 47 luxury, fully fitted apartments that range from 30 sqm to 120 sqm. The ground floor will include the apartment reception area and a 500-sqm restaurant. The underground level provides parking facilities for 28 cars.
"We're very satisfied with this transaction because having completed it, we have successfully finished the commercialization of a difficult project," said Zbigniew Sajdak, president of PBK Property. PBK Property, member of Bank BPH Group, was established in 1995, and has been operating on the Polish real estate market since. They have previously completed residential and commercial real estate projects in the past.
Diana's turbulent history goes back to 1933 when the building located on the present site functioned as a public bath and continued to do so up till 1978. In 1996 the site was purchased from the city by Diana Development, where PBK Property was a minority shareholder. The owners of the investment were put in a tight spot when the main contractor, PIA Piasecki, at the time one of the strongest private contractors in Poland, filed for bankruptcy in 2003. PBK Property stepped in, bought the remaining stake of Diana Development and continued to work on the project.
The Diana Passage was designed by the Polish-Belgian architectural firm Projekt, who is also responsible for the 19th century-style Citibank headquarters in Warsaw. The general contractor for the project was PBM Południe with EC Harris, who have worked on Poznań's Stary Browar, among others, were the project managers.
"Diana is a completely new building but it aims to recreate that pre-war atmosphere," said John Banka, Manager of the Investment Advisory Group at Colliers International Polska. "It's built completely from scratch, so you have great systems and great structure which are new, but also it's got great finishing touches on the outside."
Now that the Diana Passage is ready for the market, the question is-is the market ready for what it has to offer?
Extended stay hotels are typically targeted at the business traveler who does not want to bother with the hassle of renting out an apartment nor is attracted by the relative sterility of hotel living. They generally contain fully fitted out kitchens, are designed to accommodate guests staying for more than six nights and frequently offer weekly or monthly rates. People who are busy relocating, have longer work assignments or are participating in lengthy training programs often choose this type of serviced accommodation, which essentially is a blend of an apartment and hotel services.
"I think those are very attractive projects in the right locations and people are naturally drawn to them," said John Banka.
According to Gilbert Irondelle, managing director of Orco Hotel Collection, the cost of furbishing and setting up Diana will be about e12 million.
"After Poland's joining the EU this year, we have trust in the great potential of the development of large cities, as well as for our extended stay concept, which is quite original in Poland," said Irondelle.
With Warsaw's obvious business appeal, this segment is surely scheduled for more growth and as Marek Dąbrowski, hotel expert, believes, any increase in investments and economic growth will result in further growth on the hotel market. At the same time, Dąbrowski is quick to point out the difference between extended stay apartments and boutique hotels.
"Boutique hotels offer very specific services directed at very specific clients," he said. "They usually offer unique features aimed at a particular professional group or class and because of that are extremely popular among artists or filmmakers in cities like New York or London, where the markets are large and mature. The boutique hotel market in Warsaw still very small and may be getting saturated, after Le Regina and the Rialto opened during the last two years," he added.
With increasing demand for long-term services, the concept of extended stay apartments has been readily embraced by the market. The formula, when introduced into a vibrant and developing economy seems destined for success.
The Diana Passage, scheduled for completion in January next year, is a multi-use project that offers approximately 8,500 sqm of total space and 5,000 sqm usable space in a newly-built, period style building. The office space has been leased for 10 years to the Goethe Institute and the German Book Information Center. The residential part, which will be operated by MaMaison, consists of 47 luxury, fully fitted apartments that range from 30 sqm to 120 sqm. The ground floor will include the apartment reception area and a 500-sqm restaurant. The underground level provides parking facilities for 28 cars.
"We're very satisfied with this transaction because having completed it, we have successfully finished the commercialization of a difficult project," said Zbigniew Sajdak, president of PBK Property. PBK Property, member of Bank BPH Group, was established in 1995, and has been operating on the Polish real estate market since. They have previously completed residential and commercial real estate projects in the past.
Diana's turbulent history goes back to 1933 when the building located on the present site functioned as a public bath and continued to do so up till 1978. In 1996 the site was purchased from the city by Diana Development, where PBK Property was a minority shareholder. The owners of the investment were put in a tight spot when the main contractor, PIA Piasecki, at the time one of the strongest private contractors in Poland, filed for bankruptcy in 2003. PBK Property stepped in, bought the remaining stake of Diana Development and continued to work on the project.
The Diana Passage was designed by the Polish-Belgian architectural firm Projekt, who is also responsible for the 19th century-style Citibank headquarters in Warsaw. The general contractor for the project was PBM Południe with EC Harris, who have worked on Poznań's Stary Browar, among others, were the project managers.
"Diana is a completely new building but it aims to recreate that pre-war atmosphere," said John Banka, Manager of the Investment Advisory Group at Colliers International Polska. "It's built completely from scratch, so you have great systems and great structure which are new, but also it's got great finishing touches on the outside."
Now that the Diana Passage is ready for the market, the question is-is the market ready for what it has to offer?
Extended stay hotels are typically targeted at the business traveler who does not want to bother with the hassle of renting out an apartment nor is attracted by the relative sterility of hotel living. They generally contain fully fitted out kitchens, are designed to accommodate guests staying for more than six nights and frequently offer weekly or monthly rates. People who are busy relocating, have longer work assignments or are participating in lengthy training programs often choose this type of serviced accommodation, which essentially is a blend of an apartment and hotel services.
"I think those are very attractive projects in the right locations and people are naturally drawn to them," said John Banka.
According to Gilbert Irondelle, managing director of Orco Hotel Collection, the cost of furbishing and setting up Diana will be about e12 million.
"After Poland's joining the EU this year, we have trust in the great potential of the development of large cities, as well as for our extended stay concept, which is quite original in Poland," said Irondelle.
With Warsaw's obvious business appeal, this segment is surely scheduled for more growth and as Marek Dąbrowski, hotel expert, believes, any increase in investments and economic growth will result in further growth on the hotel market. At the same time, Dąbrowski is quick to point out the difference between extended stay apartments and boutique hotels.
"Boutique hotels offer very specific services directed at very specific clients," he said. "They usually offer unique features aimed at a particular professional group or class and because of that are extremely popular among artists or filmmakers in cities like New York or London, where the markets are large and mature. The boutique hotel market in Warsaw still very small and may be getting saturated, after Le Regina and the Rialto opened during the last two years," he added.
With increasing demand for long-term services, the concept of extended stay apartments has been readily embraced by the market. The formula, when introduced into a vibrant and developing economy seems destined for success.
