Ceepackaging

Corporate

Europa Capital’s approach to investing in Poland

In Poland, Europa Capital has been active since 1999 and has made investments in all major sectors including office, retail, industrial, residential and hotels. Europa works closely with local real estate investment company, Integrated Finance Group (IFG), with whom they have a long and successful track record.

Europa Capital’s strategy is to acquire real estate in joint venture with local partners who have local expertise in that sector. All real estate acquisitions have scope for improvement, which can include physical refurbishment of existing assets, ground-up development, changing use, effecting environmental clean-up and pursuing gains through entitlement, re-zoning and permitting. Europa Capital can therefore provide an exit route for the non pristine assets held by international or local investors/developers/owners which are not readily saleable in the market.

Another route to acquiring the real estate is through the acquisition of a company which owns the real estate but the primary business is not real estate related. These types of acquisitions bring added value through the improvement of the operating business as well as creating value through the real estate. Europa Capital would work with an operating partner whose focus would be on the operating business (which may be management) in these cases, whilst Europa focuses on the real estate.

Europa Capital can also assist real estate owners who recognise that they hold valuable real estate assets and who want to participate in the future increase in value that active asset management brings. Europa Capital is willing to acquire such assets or set up a joint venture vehicle in which owners can share in any future upside. Europa Capital also has a track record of working with private equity groups in enhancing the value of the real estate assets in their investee companies.

Europa Capital’s transactions to date include:

Sobieski Hotel, Warsaw

In October 2006, Europa Capital and IFG and its JV partner, Warimpex acquired the well known 427 room hotel. The hotel operator is Vienna International and the business plan is to increase operating profit through professional management.

Retail Portfolio, Poland

From start of 2006 to first half of 2007, Europa Capital and IFG acquired separately 14 shopping centres and retail investments in various locations across Poland. The portfolio, which was acquired in a joint venture with Balmain Asset Management, includes 6 assets in Silesia, 3 assets in Malopolskie, and 2 assets in Pomorskie. The portfolio has recently been sold to an institutional investor.

City Point, Warsaw

In December 2004, Europa Capital and IFG and its JV partner, Warimpex acquired a 120,000 sqm industrial park called City Point in Warsaw. The property comprises 18 buildings and is leased on some 70 tenancies to predominantly Polish tenants and is the largest logistics site in Metropolitan Warsaw. The property was sold in autumn 2007 to an institutional investor.

MT Development Group, Warsaw

Since December 2006, Europa Capital and IFG have made a corporate acquisition of a residential development company and 4 further acquisitions of land plots in and around Warsaw. The company, whose focus is on creating satellite communities around Warsaw for the mass market, has its own internal management team and have a development pipeline in the region of 2,000 residential units.

Photo: Robert Martin of Europa Capital