In effort to increase the value of its portfolio, Polish Real Estate Holding (PHN) is increasing its investment activity, including both development and acquisitions of existing assets. “Poland’s Treasury remains interested in selling out the holding. Therefore, our goal is to help acquire an optimal price for the portfolio,” said Józef Banach, president of PHN’s supervisory board.
PHN wants to increase the value of its portfolio by as much as 75 percent by 2023 with a particular focus in the office and residential sectors. The company has earmarked nearly PLN 1bn for office acquisitions. “Our goal is to expand our office portfolio with projects providing stable income, for which we’ll also be providing property management in the long-term,” said Włodzimierz Stasiak, a member of the PHN supervisory board, adding that the company has already initiated talks on new acquisitions, mainly in Poland’s regional cities.
At the same time, PHN will continue offloading non-profitable assets. The portfolio includes 112 projects, with 63, worth PLN 374m, already on the market. “The funds from those sales will be used for our development activity,” said Włodzimierz Stasiak, the PHN board member responsible for finances. “But we’ll also be looking to secure external financing, including bank crediting and corporate bonds,” he added.
As a part of the new strategy, PHN will also increase its exposure on Poland’s booming residential market. “Within the next three to four years we’ll be commercializing our land bank, including plots in Warsaw and TriCity. This includes projects located on Prymasa Tysiąclecia, Kolejowej, Królowej Marysieńki and Starościńskiej streets in Warsaw,” said Artur Lebiedziński, CEO of PHN.
