Develia has entered into a joint venture agreement with the CEE Student Housing Fund, managed by I Asset Management – a company specialising in investment management – and supported by Hanner. As part of the venture, a student housing facility with more than 300 rooms will be built in Wrocław.
Develia and the CEE Student Housing Fund, managed by I Asset Management and backed by Hanner, will carry out a joint venture investment involving the construction of a student accommodation facility. The building with more than 300 rooms will be built in Wrocław. Develia will act as developer in the project, responsible for land acquisition, construction supervision and fit-out of the investment. Once construction is complete, the partner will buy Develia’s stake in the project and will handle the commercialisation and management of the facility.
“Together with I Asset Management and Hanner, we will develop a project from the so-called co-living sector, which is consistent with one of the objectives of our strategy related to the development of residential units for the institutional client. At the same time, by signing an agreement with our partner, we have moved closer to achieving one of Develia’s goals for this year. We treat this cooperation as a form of diversification and a complement to our core business in the residential sector. The cooperation model developed with our partner assumes Develia’s capital commitment of 10% and receiving a remuneration for this project. We expect a significantly higher return on investment than the 15% level assumed in the strategy,” says Andrzej Oślizło, President of Develia. “As a developer, we are responsible, among other things, for acquiring the land. We have already signed an agreement in this matter, securing the real estate on which the facility will be built,” adds Oślizło.
Develia plans to start construction of the facility at the end of 2024 or the beginning of 2025, after receiving a building permit. According to the preliminary schedule, it should be put into use at the beginning of the 2026 academic year.
“The investment in Wrocław is our third project related to the construction of student accommodation facilities in Poland. In September 2023, we launched the SHED Living Kraków facility offering 566 rooms in Kraków. In Warsaw, on the other hand, a facility with 360 rooms is under construction. Due to the high demand for this type of service, we see significant potential to grow our business in Poland, where we are actively expanding our portfolio and looking for further investment opportunities in Warsaw, Gdansk and other academic cities in Poland and neighbouring countries. The very good results of the projects operating in Lithuania, Latvia and Krakow are both a showcase of our activities and a source of confidence for our partners and investors,” says Matas Mockeliūnas, Fund Partner at I Asset Management.
The CEE Student Housing Fund’s equity commitment to the project was set at 90% and Develia’s commitment at 10%. Prior to the finalisation of the transaction, the companies received approval from the President of the OCCP for the joint venture. The CEE Student Housing Fund, managed by I Asset Management, has the strong support of Hanner, a leader in the real estate and investment sector in the Baltics.
“Hanner Group’s core investment strategy is to invest in real estate and continue to allocate capital in Central and Eastern European (CEE) countries. In Poland we see good development prospects for the modern student accommodation sector due to strong market fundamentals. The cooperation with Develia and I Asset Mana-gement will allow us to enter the very interesting and prospective student residence market in Wroclaw,” says Arvydas Avulis, CEO of Hanner.
