Von der Heyden thinks time is ripe for Praga luxury housing
The company earlier this month purchased 27,000 square meters of land in the Miedzylesie suburb of Warsaw, located on the east side of the Wisla river. It plans to develop the land as a residential area.
"The idea is to develop very spacious villas," said Sven von der Heyden, owner of the Von der Heyden Group, which has developed a building at Nowogrodzka 68 and has been working on the Skorupki building in Warsaw as well as the Poznanskie Centrum Finansowe in Poznan.
In Miedzylesie, the company plans to develop 12-18 homes, each located on 1,000-1,500 square meter sites. The luxury residences will be priced between $180,000-$500,000, Von der Heyden said.
The company took the unusual move of locating a luxury development on the unfashionable Praga side of Warsaw because land prices are cheap there now, but have "upside potential," Von der Heyden said.
The company purchased the land from three private owners for an undisclosed price. However, Von der Heyden said the price per square meter was below $20. This compares to an asking price of $44 per square meter on the other side of the river in the Izabelin area or $29 per square meter in the Babice area. Both are close to forests and at similar distances from the city center as Miedzylesie.
While the below $20 purchase price makes for significant upside potential, the land would have a maximum purchase price of $540,000, and Von der Heyden will have to shell out some cash to get the area ready for development.
First, the company will have to clear young trees covering the property, which is located next to a forest. "We will keep as many trees as we can," von der Heyden said.
Then the company will have to invest up to $500,000 to develop a road that will link the area with surrounding neighborhoods. The area is about 8 kilometers from the lazienkowski bridge, which connects it with the city center.
The developer plans to target local, middle-class customers for the project. "I do hope that the market is ready for wealthy Poles who would like to live outside of the city center but not (pay as much) as in Konstancin," von der Heyden said.
Construction is expected to start in September or October once permits are obtained. The company expects that it will take 14-15 months to complete a single home. There is no completion time for the entire project because "we will build according to sales progress," von der Heyden said.
Because a vast part of the project's financing will come directly from tenants, "we will charge clients depending on how building progresses," he added.
Bucking the trend
Most property players, who spend much of their time trying to fill all the new office space going up around town, choose to locate their digs in freshly constructed buildings.
But property consultant Knight Frank Nieruchomosci has decided to take a different approach to a new home. The company has opted to occupy one floor, or 212 square meters, in the renovated Widok 8 building.
Knight Frank, which now occupies a 210 square meter office in Jasna 12, which is also the headquarters of chemical trader Ciech, plans to move to its new digs in April or May.
"It's not going to be bigger, it is mostly about the location," said Monika Rajska, an agent with Knight Frank.
Knight Frank, which has 25 staffers in its Warsaw office, would not reveal pricing details. However, the asking price for the building is $39 per square meter plus 22% VAT, which includes utilities and common space, said Gabriel Lisowski, managing director of Opera Holding, which developed the property.
Widok 8 was developed at a cost of $7 million and opened for tenants in January 1998. It still has three floors up for grabs, Lisowski said. Current tenants include Europay, law firm Gessel i Wspolnicy and property developer Von der Heyden.
But most of Knight Frank's competitors prefer glass and steel. Healey & Baker has 360 square meters in the Sienna Center; Jones Lang Wootton has between 300-400 square meters in the IPC Building on ulica Koszykowa, while DTZ Debenham Zadelhoff has 250 square meters in the Pulawska Financial Center.
In brief:
Viagra maker Pfizer Corp. has signed a five-year lease to take 2,240 square meters of space in the BTB Office Center, which is planned to open in November, according to Healey & Baker, the agency representing developer Towarzystwo Inwestycyjne BT.
Pfizer, which will move from its office on ulica Lektykarska in Zoliborz, will take about 85% of the BTB Business Center. Healey & Baker would not reveal pricing details, but the asking price for the remaining 427 square meters of retail space on the ground floor is set at $33 a square meter, which includes utilities plus a 10% charge for common space, said Iwona Kamysz, marketing manager with Healey & Baker.
lll
Property investor Heitman Financial has appointed Paul Watson as development director of its Warsaw office. Watson, 45, worked previously as senior development manager in Heitman's office in Los Angeles. In addition to regional offices in the United States, Chicago-based Heitman also has offices in London and Warsaw.
lll
Banque Paribas has left its offices in the Palace of Science and Culture and moved to a 1,300 square meter space in the Nowogrodzka 9 building developed by Top 2000, said Jones Lang Wootton, which is representing the developer in the deal.
"The idea is to develop very spacious villas," said Sven von der Heyden, owner of the Von der Heyden Group, which has developed a building at Nowogrodzka 68 and has been working on the Skorupki building in Warsaw as well as the Poznanskie Centrum Finansowe in Poznan.
In Miedzylesie, the company plans to develop 12-18 homes, each located on 1,000-1,500 square meter sites. The luxury residences will be priced between $180,000-$500,000, Von der Heyden said.
The company took the unusual move of locating a luxury development on the unfashionable Praga side of Warsaw because land prices are cheap there now, but have "upside potential," Von der Heyden said.
The company purchased the land from three private owners for an undisclosed price. However, Von der Heyden said the price per square meter was below $20. This compares to an asking price of $44 per square meter on the other side of the river in the Izabelin area or $29 per square meter in the Babice area. Both are close to forests and at similar distances from the city center as Miedzylesie.
While the below $20 purchase price makes for significant upside potential, the land would have a maximum purchase price of $540,000, and Von der Heyden will have to shell out some cash to get the area ready for development.
First, the company will have to clear young trees covering the property, which is located next to a forest. "We will keep as many trees as we can," von der Heyden said.
Then the company will have to invest up to $500,000 to develop a road that will link the area with surrounding neighborhoods. The area is about 8 kilometers from the lazienkowski bridge, which connects it with the city center.
The developer plans to target local, middle-class customers for the project. "I do hope that the market is ready for wealthy Poles who would like to live outside of the city center but not (pay as much) as in Konstancin," von der Heyden said.
Construction is expected to start in September or October once permits are obtained. The company expects that it will take 14-15 months to complete a single home. There is no completion time for the entire project because "we will build according to sales progress," von der Heyden said.
Because a vast part of the project's financing will come directly from tenants, "we will charge clients depending on how building progresses," he added.
Bucking the trend
Most property players, who spend much of their time trying to fill all the new office space going up around town, choose to locate their digs in freshly constructed buildings.
But property consultant Knight Frank Nieruchomosci has decided to take a different approach to a new home. The company has opted to occupy one floor, or 212 square meters, in the renovated Widok 8 building.
Knight Frank, which now occupies a 210 square meter office in Jasna 12, which is also the headquarters of chemical trader Ciech, plans to move to its new digs in April or May.
"It's not going to be bigger, it is mostly about the location," said Monika Rajska, an agent with Knight Frank.
Knight Frank, which has 25 staffers in its Warsaw office, would not reveal pricing details. However, the asking price for the building is $39 per square meter plus 22% VAT, which includes utilities and common space, said Gabriel Lisowski, managing director of Opera Holding, which developed the property.
Widok 8 was developed at a cost of $7 million and opened for tenants in January 1998. It still has three floors up for grabs, Lisowski said. Current tenants include Europay, law firm Gessel i Wspolnicy and property developer Von der Heyden.
But most of Knight Frank's competitors prefer glass and steel. Healey & Baker has 360 square meters in the Sienna Center; Jones Lang Wootton has between 300-400 square meters in the IPC Building on ulica Koszykowa, while DTZ Debenham Zadelhoff has 250 square meters in the Pulawska Financial Center.
In brief:
Viagra maker Pfizer Corp. has signed a five-year lease to take 2,240 square meters of space in the BTB Office Center, which is planned to open in November, according to Healey & Baker, the agency representing developer Towarzystwo Inwestycyjne BT.
Pfizer, which will move from its office on ulica Lektykarska in Zoliborz, will take about 85% of the BTB Business Center. Healey & Baker would not reveal pricing details, but the asking price for the remaining 427 square meters of retail space on the ground floor is set at $33 a square meter, which includes utilities plus a 10% charge for common space, said Iwona Kamysz, marketing manager with Healey & Baker.
lll
Property investor Heitman Financial has appointed Paul Watson as development director of its Warsaw office. Watson, 45, worked previously as senior development manager in Heitman's office in Los Angeles. In addition to regional offices in the United States, Chicago-based Heitman also has offices in London and Warsaw.
lll
Banque Paribas has left its offices in the Palace of Science and Culture and moved to a 1,300 square meter space in the Nowogrodzka 9 building developed by Top 2000, said Jones Lang Wootton, which is representing the developer in the deal.
