Masonry boomerangs

  important and astonishing occurrence on the property market. So what can be expected in the future?”

 A sure answer to that question is almost impossible, the more so that present realities have outstripped analysts’ forecasts from 2005. Even so, investors still have substantial funds and are looking for ways to spend them. Since relatively few commercial buildings are under construction, an attractive option for them are properties which have once changed hands and are now re-entering the market. Though the scale of this phenomenon is still modest, it is probable that similar offers will appear with the passage of time. Michael Atwell claims that: “We are presently experiencing a change in the kind of investors operating in Poland. Those who are not afraid of greater risks and count on greater profits, so-called opportunistic investors, are now leaving to be replaced by the somewhat more conservative funds, which prefer the greater comfort of a stable market.”

 Much is being said behind the scenes on the property market about two Warsaw buildings being put up for sale: the Warsaw Trade Centre by Apollo Rida (developed by the Korean Daewoo consortium) and West Gate – developed by NCC and now owned by DB Real Estate. They will surely have no trouble in finding buyers. The question is, however, will they be attract satisfactory capitalisation rates? Michael Atwell of Cushman & Wakefield remains confident of this: “It is of no significance to a buyer that the buildings are not all that young and are not being sold by their first owners. What is important is the location and quality of the buildings, in short – the quality of the tenancy contracts of and the reputation of the tenants, as well as the state of the buildings’ technical systems. The level of rents is also important.” That statement is backed up by Bartłomiej Hofman, managing director of Europolis Real Estate Asset Management: “The buildings are designed to have a lifespan of dozens of years and will lose no value if skilfully managed and maintained. The WTT office building was built in 2000, but differs little from the technical state of Rondo 1, which was completed this year. It can thus can serve as an example proving this claim.”Magda Konstantynowicz