Peakside is entering Poland’s residential sector, targeting both traditional development, together with built-to-let projects. The plans involve student housing, flats for young professionals, as well high-end residential schemes. “As more and more people are coming to Warsaw, and to other large cities, there’s definitely a play on residential,” managing director for Peakside in Poland, Otis Spencer, told CIJ. Thus, he adds, the fund now identifying opportunities around the country, while continue its previous strategy.
Peakside’s first transaction in Poland’s residential sector should be closed in Warsaw. While refusing to provide any details, Spencer told CIJ his company has already signed a preferred stock purchase agreement (PSPA) to acquire a property in Warsaw which it plans to convert it into high-end apartments. “Going through the process for due diligence we’ve gotten a lot more comfortable with the current pricing levels in Warsaw for the upper end of the market, so we’re talking about residential units in excess of PLN 15,000 per sqm but there’s definitely appetite out there from consumers,” says Spencer. No further details can be released, he said, until talks with the city’s administration resume.
“At the same time we’re looking at visibility of call it student housing, more institutionalization of the for-let market. This means student housing, or short-term leasing,” says Spencer and adds the plans include Warsaw as well as Poland’s key cities.
“The idea is to build a portfolio, a critical mass, which could attract institutional investors,” says Spencer and adds the fund is looking for JV partners for its plans.
