12:08 4 June 2020
Post by: WBJ

Huge gains

The total transaction value of over €1 billion has been generated in Poland through sale and leaseback, says Daniel Radkiewicz, CEO of INWI – a company that deals with land and building investments in Poland. Interview by Sankhyayan Datta

Huge gains
Source: INWI

WBJ: In numbers, how big is the sale and leaseback market in Poland and EU? Tell us more about some of the deals done in Poland.

Daniel Radkiewicz: Sale and leaseback transactions have been around for a long time in Poland. Numerous companies have decided to sell and lease their Polish assets in the last 15 years. This includes Danone, Orange, Philips, Metro Cash & Carry, OBI, Inalfa Roof Systems and Greenyard. They have generated a total transaction value of over €1 billion.

However, currently, sale and leaseback transactions in Poland are not as popular as in Western Europe or the US. The reason of that unpopularity is due to common myths about this type of transaction. Entrepreneurs have concerns about losing control of their facilities. However, in practice, the company uses its facility on its own terms without any interference from the investor. There are numerous guarantees in the sale and lease agreements in order to protect the seller and the future tenant.In the meantime, it generates capital that the seller can use to grow its business . 

WBJ: How badly has the coronavirus pandemic affected the Polish sale and leaseback market? Any silver linings?

DR: During crisis companies are looking for alternative financing because banks today are very restrictive. So we presume the number of sale and leaseback transactions will increase.

WBJ: According to CEO World research, Poland has been ranked the third-best country to invest in the post-coronavirus world. And according to an economic forecast by the European Commission, the Polish economy is set to be the least affected in the EU by the Covid-19 pandemic. What does it mean for the sale and leaseback market?

DR: Yes, I think it is worth mentioning that according to CEO World research, Poland has been ranked the third-best country to invest in the post-coronavirus world. Less affected economy resulting in less affected companies. From an investor’s point of view, it’s good to have a strong and stable tenant. From an owner’s perspective it is important to retain cash-flow. Most companies are affected by the lockdown. We are convinced that the sale and leaseback market is currently at its prime.

With 14 years of experience in the real estate market, Daniel Radkiewicz, CEO of INWI, has completed 47 purchase/sale transactions of lands and buildings on the Polish market. Previously, he held the position of development director at Bouygues Immobilier Polska and also worked for Yareal Polska.

Radkiewicz graduated from Skema Business School in Lille and Kraków University of Economics. He has finished postgraduate studies at the Warsaw University of Technology, Kozminski University and the Warsaw School of Economics (SGH). He also received a certificate from the Royal Institution of Chartered Surveyors (RICS).

The fund for which INWI works is a large European entity. It specializes in sale and leaseback transactions and build-to-suit financing. In its history, it has already made several such transactions in Europe (including Poland) and is planning a major development in this direction this year –  it has €100 million to be allocated. The fund requires a minimum 10-year lease agreement (which is beneficial for both parties in the transaction) with reliable companies. It can acquire large logistics, warehouse, production and office facilities located throughout Poland.

More about this topic you can read HERE.

For more information about what INWI has to offer check-out : https://inwi.com.pl/ or contact: Daniel Radkiewicz at: daniel.radkiewicz@inwi.com.pl

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