The history men

Restaura, Reinhold, UBM, Von der Heyden, Ghelamco, Yareal... the group of companies dedicated to renovating old tenement buildings is steadily increasing despite the complex construction procedures involved and the often problematic cooperation with historic buildings conservators

Such activities were simply sneered at a few years ago. Isolated schemes were carried out by Von der Heyden,
(e.g. Lublinianka Hotel in Lublin) and Yareal Polska (a tenement building in Warsaw at ul. Mokotowska 19). But today, when prices for site development have rocketed, more companies interested in purchasing and renovating old buildings, including several specializing in this field, have emerged.

History with
a business aspect

Restaura of Spain, which has been revitalizing buildings for 30 years, is one example, and is currently active in Spain, Portugal and France, with not only single
tenements on its list, but also whole sections of streets. The company claims it has renovated 600 buildings. It began its Polish operations with the purchase of a historic building and villa at ul. Piękna 44 and 44a in Warsaw and an annexe at ul. Hoża 50. Reinhold of Sweden purchased two dilapidated buildings in Warsaw city centre at al. Jerozolimskie 61 and 63. The intentions behind such purchases were best outlined by Marta Kwintal – representing the latter investor – who revealed that they are interested in historic buildings which can be transformed into deluxe offices.

Restaura and Reinhold well know how to resolve the various problems connected with investing in old buildings and are willing to cope with the risks of undertaking jobs requiring protracted project implementation, greater financial outlays, resolving claims presented by ex-owners and conflicts with existing tenants who often refuse to leave their properties. Paweł Augustyn of Restaura asserts that: “These are matters which can be amicably settled, to mention but the negotiations with residents of the tenement on ul. Piękna.”

Most matters cannot be settled so simply. In the case of the building at ul. 63 Jerozolimskie, Tomasz Gudzowaty could not reach an agreement with his tenants for many months, before eventually deciding to sell it to Reinhold. The media highlighted the furious scenes played out there three years ago, when the tenants claimed that the owner was using all possible means to eject them from the building, including welding the entrance to the lift.

Conservators often a real problem

Conservators often have to be brought into the picture when an old tenement building is to be transformed into deluxe apartments or offices, especially those which have been included in the register of historic buildings precluding them from being rebuilt at will. This is why the investor, before he becomes the owner of a building, must be fully acquainted with the nature of its status in the register, whether it applies not only to the building’s elevation, but also its interior. The whole situation becomes more complex when the procedure for registering a historical building is started only when it has just been purchased. This is often the case when societies of enthusiasts of historic buildings enter the fray, concerned about the excessive transformations and demolition that may be planned by the investor. Yareal of France is now embroiled in such a situation. It purchased the historic buildings of the former Łopieński Brothers factory on ul. Hoza, intending to convert them into apartments. The project has been put on hold for the moment, despite the beginning of the work having been planned for August. The provincial conservator of historic buildings has now started a procedure to classify the property as having historic importance. Olga Prokopiak of Yareal Polska refused to go into any of the details for this investment due to the ongoing administrative procedures.

The redevelopment four years ago of the Dom Dochodowy building on pl. Trzech Krzyży by the Platan Group created real conservationist headaches. Historic buildings campaigners were opposed to its superstructure, which was to surmount the historical elevations and attempted to make construction work impossible. Few people remember the conflict of those days, and now the developer even claims that the property is 100 pct rented is generating a profit. There are, reportedly, companies which have an eye on the place and are asking when the contract will expire, according to Anna Osada of the marketing department of Platan Group. She also stresses that efforts spent on conservation are bringing returns. “The longer investment process and greater financial outlays can be recompensed by higher rents, with the price of 1 sqm presently standing at EUR 25.” She stresses that you have to remember, when tackling such a project, that conservator supervision lasts even after the project is finished. She adds: “A tenant recently wanted to build an additional door giving entry from the street but was refused permission without conservator consent”.

Paweł Augustyn of Restaura pinpoints an additional problem which must be tackled when deciding in implementing a project involving an historical building – the creation of parking space – which is enormously problematic in city centre conditions. Restaura’s marketing director explains that, apart from security, parking sites are a problem which should be resolved jointly with the city authorities.

To a greater extent the problem, however, concerns office premises, which is why the Dom Dochodowy investor requested agreement to demolish the neighbouring unregistered building. As a result the developer could have an underground car park, but with a lift for vehicles – which increases the investment and maintenance cost.

A building’s soul

Developers remark that to purchase a good tenement building in Poland is no easy matter, with proprietors presenting great financial demands. Paweł Augustyn to those remarks adds: “Analyses have to precede a decision to purchase a property. Our specialists check the building’s technical state – its systems, floors and ceilings and also try to get to know the tenement’s history – which assists not only in restoring a building’s excellence but also gives it a soul and makes it attractive to both the owner and the tenants” – at least such is his conviction.

Though the consensus may differ, the fact remains that elements similar to those in new constructions are used in restoration of tenements. Anna Rostkowska, architect and the owner of Pro-Art studio, which cooperates with Restaura among others, makes no secret of the fact that the key to success is the choice of appropriate materials. “If you are working on a 19th-century tenement you have to remember that oak has to be connected with a specific marble.” She adds that the boom for old, pre-war buildings also favours conservationist policy, going on to remark that contemporary projects which try to copy older forms of architecture are often much criticized.

Kinga Konińska of the Von der Heyden Group, claims investing in even small historic buildings is worthwhile. The company has just purchased two apartments in a Warsaw tenement building on ul. Wilcza 22 dating back to 1884. Working in conjunction with the local residential community, it intends to restore the elevation, obtaining extra living space by adding another storey. In this way, six 2-storey apartments can be built.

Offsetting risk

There is yet another characteristic feature of such investments. Developers who engaging in building revitalization will tend to offset the risk involved by investing in new projects as well. Von der Heyden and Ghelamco are erecting new office buildings while Restaura is developing a residential estate in Poznań (a project bought from VDHG). Reinhold of Sweden also pursues a somewhat different diversification policy … by managing fitness clubs.       n

Daniel Zyśk