Third largest European rental property operator, the Swedish company Heimstade, started its operations in Poland with the acquisition of two construction projects for rent in Warsaw. At the beginning of 2021, construction of 640 new apartments will begin in Praga-Północ and Służewiec.

The first tenants will be able to accept the facilities in the first quarter of 2022 and 2023, respectively. It is one of the first investment projects of this type in Central and Eastern Europe, under which the investor builds new residential buildings with a view to renting, not selling. Entering the Polish market is an expression of Heimstaden's faith in the strength of the Polish economy and the dynamics of development of the local real estate market.

Heimstaden has acquired a project to build two residential buildings in Warsaw for approximately €65 million from the French real estate development and construction company Eiffage, which will also act as the general contractor.

The buildings will accommodate approximately 640 apartments, as well as commercial and service premises and parking spaces. The commercial and service space on the ground floor will be used mainly for services for tenants, which will be provided here by external companies or directly by Heimstaden, acting as the owner and manager of the property.

“It is a completely new type of investment on the real estate market, both in Poland and Central and Eastern Europe. We do not invest with the resale of flats in mind, but for long-term and stable rental of premises. I am deeply convinced that our Warsaw project will be one of many to be implemented by local developers in Poland soon. We will also start building a team in Poland to be able to manage our portfolio in the future. We are convinced that in a short time we will be able to build several thousand apartments in Warsaw and other large cities,” Stanislav Kubáček, manager of the CEE and Germany acquisitions team at Heimstaden, said.

(WBJ)