MVGM, a leading real estate manager on the Polish market, has obtained another mandate in the dynamically developing PRS sector. The company signed an agreement with the Scandinavian investor NREP and took over the management of over 200 rental apartments owned by the fund. MVGM will provide comprehensive management services in Warsaw investments located at Lazurowa and Kłobucka streets. The process of acquiring tenants will be carried out by the company as part of a strategic cooperation with Hamilton May.
MVGM was one of the first companies on the Polish real estate market to start developing specialized management services dedicated to owners and developers of investments carried out in the institutional lease formula. The competences developed by the MVGM team in this area allow the manager to respond to the rapidly growing needs of the PRS sector in our country. Thanks to the new cooperation, the MVGM portfolio has increased to over 1,660 apartments for rent.
“A few years ago, the institutional rental market in our country was barely noticeable and limited to just a few investments in the capital. Now this sector is gaining momentum at a very fast pace. Investors’ announcements and market forecasts indicate that the existing stock of approx. 7,000 apartments for rent in the coming years will increase by another 32,000 apartments. The funds are looking for new markets to locate the accumulated capital, and development companies are prepared to build entire housing estates for rent. The shrinking supply of flats and their high prices, combined with the economic situation – rising interest rates and inflation affecting higher living costs – translate into a shift in preferences in favor of renting. The fact that an experienced, international investor starting operations on the Polish market will benefit from our constantly expanding offer for the PRS sector, is especially pleasing to us, because it confirms the good direction of MVGM’s activities and the quality of our services,” comments Łukasz Mazurczak, Managing Director of MVGM.
MVGM experts took over the management of 213 apartments located in two Warsaw investments at Lazurowa and Kłobucka streets. The apartments belong to NREP – an investor with Scandinavian capital, which after 15 years of presence in the real estate industry in the Nordic countries decided to expand to other markets, and Poland became the first country in which it started investing. In 2021, NREP signed an agreement with the Finnish developer YIT for the construction and purchase of a portfolio of over 1,000 apartments for rent located in Warsaw. The investments managed by MVGM are the first stage of NREP’s cooperation with YIT.
“A very important aspect for us is the comfort and quality of experience of our tenants. In addition to the characteristics of the properties themselves, including, inter alia, the location and standard of finishing the premises and common areas, we want to make sure that the needs of our residents will be addressed at all stages of cooperation, from the contract signing process to ongoing service during the rental period. We decided to entrust the issues of direct cooperation with tenants to our partner MVGM. Together, we have developed a model that will allow them to take care of their needs and experiences. Selected elements of this approach include clear lease terms, professional contract conclusion process, proper maintenance of premises and common areas, as well as easy access to information and additional services via the application or contact with a dedicated guardian. We believe that these activities will be positively received by our residents and will be an additional argument for using our offer,” says Maciej Piotrowicz, Head of the Department of Housing Investments in Poland, NREP.
As part of the contract, MVGM will provide comprehensive management services. The company will conduct the process of acquiring tenants in partnership with Hamilton May.
The NREP investment located at Kłobucka Street in Warsaw:
“We decided to start cooperation with Hamilton May due to the high standards of service and customer service, as well as shared values. The company has been developing on the Polish real estate market for over 18 years, is a recognized brand, and additionally specializes in the rental of apartments and flats, both for private individuals and companies. Hence, the choice of this partner was a natural process for us,” adds Łukasz Mazurczak.
“Thanks to a strategic partnership, Hamilton May and MVGM combine in-depth market knowledge with European experience in the field of apartment management and rental. It is a unique value on the developing PRS market in Poland, giving us the scale and knowledge needed to implement the assumptions of NREP projects,” concludes Rob Watkins, Hamilton May CEO.
According to the data of the Polish Association of Developers [and] long-term rental on the Vistula River is mostly based on individual apartment owners, from whom premises are rented mainly by young people, under 35 years of age years of age (61%). Institutional lease in the capital is just beginning to develop. The main group of tenants of the PRS investment are people over 35 years of age who do not live with children, and as many as 75% of them are women. The survey also shows that 33% of PRS fund customers are people who needed a place to stay due to moving from another city. Institutional tenants mentioned a convenient location, conducive to the comfort of everyday life, among the advantages of this type of lease. In addition, they appreciate the possibility of living in attractive districts of the city and the proximity of green areas, which means that the quality of life is particularly important in this group.
