Develia has entered into a joint venture agreement with The Heart, a venture building company. As part of the contract, a company will be established, the main product of which will be a flat rental management platform targeted at institutional and individual investors. The platform will be a comprehensive rental service tool, covering the entire process, starting from the marketing of premises for rent, through the process of renting the apartment and settling the rent, to additional services for tenants – such as catering, cleaning or repairs.
The company to be established as part of the JV will be controlled by Develia, whose team has the necessary competences and know-how, both in the area of commercial and residential real estate. The Heart is a technological partner responsible for the creation and operation of the platform. The business concept is the result of the work of both entities, which will work together on the further development of the company. The investment outlays on the project will total PLN 8.5 million over the next 3 years. The total target commitment of Develia will amount to a maximum of PLN 7.5 million. Depending on the stage of the investment and the degree of implementation of the incentive program, the developer will hold from 76.5% to 57.5% of the company’s share capital.
“We have been observing the systematic development of the institutional rental market for several quarters. In addition, as a result of the increase in interest rates and the war in Ukraine, the demand for apartments for rent increased significantly, and rental rates encourage individual and institutional investors to invest in the real estate market. At the same time, we are aware that not everyone has the resources to deal with the complex lease process, so we want to address this need and offer the market a platform that will significantly improve it. It will be easier both for apartment owners, regardless of whether they are funds or individual clients, but also for people looking for a flat for rent<" says Andrzej Oślizło, president of Develia. "Development on the institutional rental market is one of the important goals that we set out in the strategy for 2021-2025. The platform will be an additional element that will complement and increase the value of our offer for PRS investors," adds Andrzej Oślizło. The platform will offer comprehensive lease services, including finding a tenant, formal issues and signing a contract. Then, it will enable the transfer of the apartment and keeping current settlements. All this will be implemented on the basis of technological solutions that enable the management of the entire rental through a mobile application. Additional services for tenants will include: ongoing repairs or ordering catering. However, most of all, the platform is designed to give a sense of comfort in using the rented apartment, and to provide investors with full knowledge of the tenant's situation at any time during the term of the contract. The offer for the PRS market will also include property management, including technical inspections and maintenance of common parts. "Renting apartments is often associated with the owners' great commitment and time devoted to many matters related to the property. Today we want to show that thanks to technology, the entire process for both parties can be as simple as ordering food for delivery or shopping online. Additionally, technology enables us to constantly develop the product and add new functions. We want to digitize the relationship between tenants and landlords as much as possible, introducing a completely new quality to this service," says Maciej Marszałek, CEO of The Heart. "Our experience in creating digital solutions based on the design of perfect UX and processes gives us confidence that we will create a functional and long-awaited tool," he adds. The operational launch of the platform is planned for 2023. At the beginning, the solution will be available to funds and individual clients who own apartments from the Develia offer. In the next stages, the developer plans to expand the group of potential recipients. According to the assumptions, in the perspective of 5 years, by 2027, the platform is to serve several thousand apartments. Develia is one of the largest developers in Poland, implementing residential and commercial investments in Warsaw, Wrocław, Kraków, Gdańsk, Łódź and Katowice. Since 2007, Develia (then LC Corp) is a company listed on the Warsaw Stock Exchange. So far, Develia has completed over 14 thousand. premises in 101 stages of the investment and 7 commercial facilities. In 2021, Develia generated PLN 911.9 million of sales revenues and PLN 153.9 million of consolidated net profit. The Heart is a corporate "Venture Builder" that creates independent startups based on new technologies, digital products and services, both in cooperation with corporate clients and independently in response to market needs. Based on a proprietary developed methodology, it creates individually tailored solutions. In addition, it supports corporations by searching for and implementing technologies provided by an ecosystem of leading startups from all over Europe. More at: theheart.tech.
