Xcity to develop PKP projects

The number of the developable PKP plots is estimated at 130. The newly-created company will be able to plan projects on some of the most attractive development sites in the centres of Polish cities and towns. Xcity Investment will be responsible for creating the investment structure needed for the scale and specificity of the joint venture projects undertaken, while also developing its own, smaller development projects. The move aims to facilitate and simplify the company’s real estate management operations, with Xcity Investment replacing all the SPV companies established by PKP for this purpose so far. Maciej K. Król, the current director of the investment department at PKP, will be Xcity Investment’s president. The new company, whose seed funding comprises PLN 937 mln assets, plans to have built up a PLN 24.2 bln property portfolio by 2018. “We are already working on 18 projects, the total value of which could reach even as much as PLN 13 bln. We aim to develop around twenty projects a year in the next few years,” explains Jarosław Bator, a board member at PKP. The largest PKP projects to be taken on by the new entity include Warszawa Główna, Warszawa Gdańska and Warszawa Zachodnia in Warsaw, Wrocław Świebodzki, Poznań Główny, as well as some highly attractive plots situated above the tunnel on the western side of Warsaw’s Central Station. PKP is expecting to eventually generate a PLN 1.25 bln profit from the development side of its business.

With partner in Gdynia

One of the first projects the newly created company will be getting busy with is a EUR 700 mln project located on a 14.4 ha site in Gdynia Międzytorze. The Międzytorze site is one of the most attractive investment plots in the TriCity. PKP’s project will involve the revitalisation of the area, which is set to be transformed into a mainly residential area with some retail, office and hotel facilities. “The development concept for Międzytorze is for the area to blend in with the existing urban fabric and to become an important part of Gdynia’s city centre,” says Jarosław Bator. The entire project, which will be divided into a number of stages, is scheduled for completion in 2026, with the construction work due to start in 2017. It is estimated that the overall space provided by the project could be as much as 345,000 sqm.

...and in Kraków

For the main train station in Kraków, meanwhile, GD&K Consulting is to develop a neighbouring 1.4 ha plot. PKP has chosen the Kraków-based developer as its partner for the EUR 55 mln office project. A building permit is expected to be granted in Q3 2015, with the work at the site due to begin in mid-2017. The project involves the construction of an office complex and the modernisation of the existing railway buildings. “We will build 21,000 sqm of office space in stages,” says Jarosław Bator. In the first stage two office buildings and two covered car parks will be constructed. The second stage will involve the construction of another office building and the modernisation of three historic buildings – a printing house, a water tower and a rail yard. The first stage of the project is expected to be completed at the end of 2018, while the second stage should be completed at the end of 2019.

And in smaller cities...

PKP and Xcity Investments have also signed agreements with Dekada Realty to develop the areas around the railway stations in Mińsk Mazowiecki and Konin. For the Mińsk Mazowiecki railway station project a PLN 30 mln contract has been signed, while the Konin railway station contract is worth PLN 38 mln. New stations are to be built in both locations together with retail parks. The construction work on the two projects is set to start in 2016 or 2017 and should be completed within around twelve months. Before the work can begin the formalities still have to be completed, which will include analyses and the preparation of planning documents. Passenger services will be taken over by temporary stations for the duration of the work. “The majority of our development projects currently being carried out are located in large cities. However, as you can see, smaller towns are also enjoying investor interest,” says Maciej K. Król. Another project is the redevelopment of the Warszawa-Włochy station in the capital city. The project will involve the modernisation of the station and to develop a service and retail section. ν