Murapol Capital Group, one of the largest and most experienced residential developers in Poland, has signed two agreements since the beginning of November for the construction of 948 housing units under the design&build formula in the PRS segment. The total value of the transactions amounts to PLN 262.1 million net and involves the construction of two developments in Gdańsk, at Śląska Street and Twarda Street. Revenues from these investments will be recognized proportionally to the progress of work, with the completion of the constructions anticipated no later than 2027.
“We stand confidently on two strong legs and actively operate in complementary segments: development, which is our main area of activity, and PRS, where we are continually increasing our activity. Our two November agreements in the PRS segment, which together encompass the construction of nearly one thousand housing units, show our business model and strategy are performing admirably. Importantly, we are seeing growth and development in the institutional rental market in Poland and are capitalizing on market opportunities in this area,” says Nikodem Iskra, President of the Board of Murapol S.A.
November’s sales for institutional rental housing come as a result of two agreements signed on November 8th and 15th. The first concerns the construction of 365 housing units in Gdańsk at Twarda Street, with a net value of PLN 119.6 million. The second contract, a Development Management Agreement (DMA), signed on November 15th, involves the construction of 583 units at Śląska Street in Gdańsk, valued at PLN 142.5 million net. Under these agreements, Murapol Group will design, construct, and fit out a total of 948 units for a professional institutional investor, a company owned by AEREF VI PL PRS S.a r.l.
“The PRS market in Poland still makes up a small part of the rental sector – apartments in this formula in the Tri-City area represent only about 6% of all such units in the country. At the same time, we see growing interest from tenants and recognize significant development potential both in this agglomeration and throughout Poland. Since launching LifeSpot in 2021, we have become one of the leading institutional investors, consistently implementing a strategy of expanding our apartment portfolio. Our goal is to increase the number of units to around 6,000 to meet the needs of the dynamically growing tenant group. We believe the PRS sector, supported by supply growth and sustained high demand, will become one of the key pillars of the real estate market in the coming years,” says Marek Obuchowicz, Senior Partner, Griffin Capital Partners.
Murapol Group’s business is based on two pillars: the development segment and PRS, which mutually complement each other. Since 2021, Murapol Group has been collaborating with AEREF V PL PRS S.à r.l. and its affiliated companies (PRS project companies, LifeSpot), managed by Ares Management UK Limited (a subsidiary of Ares Management Corporation), and from 2024 also with AEREF VI PL PRS S. à r.l.. This dual activity allows retaining a large scale of operations, and even an increase in the number of housing units built, regardless of the primary market conditions. On September 30, 2024, the portfolio of projects under construction encompassed a record 8,684, including 7,321 in the retail segment and 1,363 in the PRS segment. An active land bank allowed for the construction of nearly 22,000 units.
Source: https://managerplus.pl/grupa-murapol-z-listopadowa-sprzedaza-blisko-tysiaca-lokali-na-rzecz-instytucjonalnego-wynajmu-prs-91046
