Mars RE prepares new projects

Tomasz Lewandowski, the managing director of real estate assets of investment fund MS: The construction process is on schedule. The first above-ground floor of the future office building is to be completed in August. At the same time, regardless of the activities carried out by our exclusive commercialisation agent CBRE, we, through a team of experienced employees, are undertaking active operations aimed at finding office and commercial tenants for the Nowy Świat 2.0 building. We are currently in advanced negotiations with a few serious parties who will hopefully become our tenants. I think that by the end of Q2 2015, i.e. by the time of the completion of the construction process, we will be able to boast a full lease of the office space in the Nowy Świat 2.0 building. I expect the first few lease contracts to be signed in the autumn.

Are there any changes in the offing for the neighbouring CBF building, formerly Dom Partii?

We have been preparing for a major revitalisation of the building for some time. This has been planned and is necessary due to its age and the level of technical wear-and-tear. We expect the modernisation work to start in Q1 2016, but the final date will be subject to arrangements with our key tenants so as to minimise – as much as possible – any disruption related to the work and their possible temporary relocation. It is our intention to carry out the redevelopment in a number of stages, with the individual wings of the building being taken out of use in succession. We are also planning significant functional and stylistic changes to the internal courtyard of the Centrum Bankowo Finansowe Nowy Świat building, but the project is still at the general concept stage and has to be approved by the monument preservation and municipal authorities. We will only be able to divulge the details after we obtain their approval. Nowy Świat 2.0 is not the only office project you are engaged with in Warsaw. EQlibrium is to be built in the Odolany area of Wola. This part of the city is not such a unique location...This depends on how we view this district. On the one hand, Wola is indeed developing rapidly, but it should be remembered that our building will be the only office project near ul. Ordona and ul. Jana Kazimierza and will also have very good transport links. This location might be preferred by tenants looking for good exposure for their company in a building with ease of access, rather than one in a more business area. We are in the process of choosing the general contractor for the project and securing the financing at the same time. We are also in advanced leasing talks.

Have you managed to choose a partner for the Gdynia Waterfront project?

We have entered advanced negotiations with our partner. I think that the talks should be concluded within two or three months and we will be able to disclose the details then. At this time I can only say that we are negotiating with a well-known company that operates in Poland and on the international market.

And you have other projects planned in the TriCity...

Yes, we have. We will be operating on that particular market via one of our portfolio companies – Unimor Development. Our plans involve adapting a teaching and office building on ul. Żabi Kruk in Gdańsk into a modern facility with an area of app. 5,000 sqm. Unimor

Development is also carrying out the preparation work related to the construction of an office building on ul. Wilcza in Gdańsk, where a building with an area of almost 5,200 sqm could be built on a 0.26 ha plot. We are looking to obtain a building permit this year. However, the project on ul. Żabi Kruk will be the first to start.

What will be the role of Mars RE in Polska Grupa Zbrojeniowa (PGZ)?

The fund’s entry into PGZ is only an ownership change. As far as operations are concerned we will operate on our former basis. Regardless of the ownership structure, the aim of the fund is to increase the value of the assets held. Companies from the Mars RE group will contribute their experience and competence to PGZ, which is necessary to market the properties owned by other PGZ companies. So far we are preparing for due diligence analyses of these assets. On this basis we will present the owner with a number of proposals regarding the best possible use of the properties.

How many properties are there in PGZ?

So far PGZ has acquired the stocks and shares of 17 companies, but as many as 30 entities with significant real estate potential will ultimately become part of the group. The total scale of these assets will be huge, but we will only be able to talk about the details when the second stage of the consolidation of Polska Grupa Zbrojeniowa is complete.