Skanska also builds for institutional rental

Housing company Skanska has bought more than 7,000 sqm of land on Przybyszewskiego Street in Krakow from local entrepreneurs.

The developer plans to develop a PRS project on the site. According to Daniel Puchalski, Managing Partner and Co-Founder of immo lab, the consulting agency responsible for preparing and carrying out the transaction, the investment potential of the plot allows for the development of about 20 thousand sq. m. of leasable space.

- For many, Skanska's transaction, marking its entry into the PRS segment, may come as a surprise, as the company is known for building apartments for individual customers. We, however, perceive it as an illustration of a larger trend, already visible for many weeks in the Polish housing industry, of accepting that a sizable portion of the apartments being built in Poland will go to investment funds. PRS funds, whose dynamic development we have been observing in Poland for the past two years, are now a new source of demand for developers, and many companies are already negotiating contracts with them, says Daniel Puchalski in an interview with Puls Biznesu. 

The change in the approach of residential developers to transactions with funds is due, among other things, to increasingly weak demand from individual customers using mortgages and inflation. This is confirmed by the transactions closed by immo lab in the Krakow market and the investment processes currently in the due diligence stage in Krakow, Gdansk and Warsaw.

- In Gdansk it is a land property for 11 thousand, sq. m. of usable space. In Warsaw, about 10 thousand, sq. m. - the entire building being sold to PRS. In Krakow, two transactions are underway - one land for a multifunctional project, combining apartments for rent and offices, and the other is a typical forward founding investment on a plot intended for a service function, where rental units will be built, adds Daniel Puchalski.

The entire article is available here: https://www.pb.pl