PHN Is Preparing a New Attractive Offer of Apartments for Rent and Intensifying Real Estate Sales

PHN is preparing a new attractive offer under which selected properties will be assigned for residential rental as well as for sale. More than 100 apartments for rent will be available from PHN starting this autumn. Properties for sale will be successively added to the company’s offer.

An intensive analysis of PHN Group’s portfolio is currently underway, as a result of which the first decisions have already been made – namely to intensify rental activities and sell selected properties. Apartments in attractive locations, with varying sizes and functional room layouts, have been assigned for rent. On the other hand, the assets which, after thorough evaluation, do not fit the target structure of the portfolio have been assigned for sale. Due to their nature, location, small area or limited expansion possibilities, they can hardly be considered strategic for the PHN Group. Involvement in this type of property will not be adequate to the benefits expected by shareholders and the Management Board, which does not change the fact that, for example, for individual investors, they will be very interesting.

In the first place, more than 100economy apartments will be prepared for rent, in properties located in well-connected parts of the capital on Grójecka and Gościeradowska Streets, among others.The apartments will be renovated and adapted to the needs of different groups of tenants. With varying sizes ranging from 30 to 130 sqm, the units will be a great option for both families with children and students.

“Major metropolitan areas, such as Warsaw, continue to see strong demand for buying and renting apartments, particularly those located in city centres and well-connected areas. Every unit without a tenant is a double loss – firstly, a social one, because these apartments should serve the development of Warsaw in the sense of people who want to live here, and secondly, an economic one in terms of temporarily lost benefits. Moreover, as a developer, we currently have more than 750 new apartments on sale, and we are supplementing this offer with attractive apartments for rent in the capital,” said Wiesław Malicki, President of the Management Board of Polski Holding Nieruchomości.

PHN’s goal is to increase net operating income and cash flow, which should be achieved by, among other things, increasing rental income and reducing vacancy rates, while proceeds from the sale of properties will serve to reduce debt levels and develop new profitable projects.

“We are analysing PHN Group’s real estate portfolio. One of the decisions, based on the results, is to sell assets unrelated to the target business profile. These are interesting properties for potential buyers, but PHN should concentrate on strategic units in its portfolio. Our energy needs to be focused on higher-yield projects,” said Maciej Klukowski, Member of the Management Board for Managing Property Assets, Polski Holding Nieruchomości.

The PHN Group’s portfolio comprises 152 standalone property assets with a market value of approx. PLN 3.5 billion, which makes the company one of the industry leaders in Poland. PHN Group has a diversified business profile and is active in several market sectors, mainly in the office and residential segments. Currently, PHN Group is developing six projects and manages more than 500,000 sqm of leasable space. In terms of planned activities, also as part of the aforementioned analysis, PHN Group is dividing its real estate portfolio into the following four segments: remaining in the portfolio, for optimization, investment projects, and for sale.

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ABOUT THE PHN GROUP

Polski Holding Nieruchomości S.A is one of the largest groups in the Polish commercial property sector in terms of the market value of its portfolio. PHN Group has a diversified business profile – it is primarily active in the office, residential and logistics markets. PHN Group’s portfolio comprises more than 150 standalone properties with a market value of approx. PLN 3.5B. PHN Group provides comprehensive rental and management services – it currently manages more than 500,000 sqm of leasable space. PHN Group owns about 270 hectares of land earmarked for projects in various market segments. PHN Group is also active in the construction sector – by providing general contracting, subcontracting and design services, as well as in the development sector as an investor – by carrying out projects related to the construction and sale of residential units and the construction of commercial buildings. PHN Group’s main market is Poland. PHN’s activities in the rental segment are concentrated primarily in Warsaw and the largest regional cities, including the Tri-City, Poznań, Cracow, Katowice, Łódź and Wrocław. PHN has been listed on the Warsaw Stock Exchange since 13 February 2013.