Investing in the future

Following the success of the Polonia I investment fund, Irish AIB Capital Markets (AIB CM) has just opened the Polonia II fund. Meanwhile, Polish National Investment Fund (NFI) Octava wants to raise its capital through issuing new shares designated for the current shareholders.

AIB CM wants to raise between E150 (zł.567) and E200 (zł.756) million by the end of May. Mirosław Januszko, investment director at AIB PPM, a subsidary of AIB CM, and the investment manager of the Polonia II Fund adds that there will be three diversified investment strategies: "Some 50-60 percent will be spent on completed properties. The remaining equity can be invested into both development projects and 'core plus' projects - investment properties with significant improvement, refurbishment or conversion opportunity.'"

The investment period will last for at least seven years with an extension option of an additional two years. "The capital raised will be leveraged on a 3:1 basis, which will provide an estimated total acquisition finance of E800 (zł.3,022) million," says Januszko.

At the same time, NFI Octava is planning to issue up to 120 million shares to finance at least three real-estate projects. The issue prospectus has been sent to the Polish Financial Supervision Authority. The management expects to raise between zł.65 and zł.72 million.

"The fund wants to buy medium and large projects, which will allow us to create mixed complexes in various regions of Poland," says the president of NFI Octava.

In its portfolio, WSE-listed NFI Octava has projects on three plots on the outskirts of Warsaw and two in Wrocław, including the Galeria Legnicka shopping center.