First steps as a developer

Portfolio diversification
"We have entered the final straight of restructuring the group's portfolio. So far we have managed to sell two subsidiaries producing hydraulic machinery. Now we are closing the sale of another business that develops welding technology. From now on we want real estate development to become our main focus, but in the future we will be aiming at property management," reveals Jarosław Jankowski, the president of the management board of Waryński Holding Group. He believes that the market has always had potential, which was reflected, among other factors, by the constant demand. The fact that after the credit crunch only the most experienced and stable players remained active in the development sector was also an important factor for the group. Now Waryński Holding Group wants to join them and has already laid the foundations for such a move. The group owns several properties in Warsaw's Wola district and intends to maximise their potential. In addition, the company continues to extend its land bank by acquiring attractive land in the capital city. "I expect that by the end of the year we will have become the owners of another two properties in Warsaw," he adds.

In search of a strong partner
Waryński Holding Group intends to take its first steps into property development by carrying out its first project with an experienced developer. "We want our investment on ul. Jana Kazimierza to be built together with a major developer in order to ensure the safety of the project and to benefit from the experience and know-how of entities that have been present on the commercial development market for a long time. We also wish to combine two brands: Waryński Holding Group and a development brand," reveals Jarosław Jankowski. The group is now in the second phase of selecting a potential partner. "We were surprised to see how many developers were taking an interest in our project. Several of the biggest companies on the market, including those on the stock market, offered their services in the first phase of the selection. We held meetings with all of them and discussed the project. Now we are starting the second phase, for which we expect comprehensive offers. By the end of the year it will become known who we will be working with," explains Jarosław Jankowski. Apart from experience and a stable position on the market, Waryński Holding Group requires a financial contribution to the investment from its partner. "We are contributing the land and the design work, which has already started," he adds.

Eight-year project
The project is to have a total area of 100,000 sqm and is to be developed on a 70,700 sqm site. The cost of the project is expected to amount to PLN 400-500 mln. It will be a mixed-use retail and residential building, but the exact proportion has yet to be disclosed. "At present this cannot be determined, as the design work has just begun," says the group's president. The company expects that the project, due to its size, will take about eight years to develop. Planning permission is expected next year and the first construction work could start in two and half years. Waryński Holding Group has established a company - MS Waryński Development - to take charge of the development of the project. The group intends to manage the new building itself, but the property management could be offered to other entities.
In its present form the company has been active since 1991, when Zakłady Koparek i Hydrauliki Bumar-Waryński was transformed into a joint-stock company with the business name of Bumar-Waryński. Later a corporate group under the name of Bumar-Waryński Grupa Holdingowa was established, and on January 31st 2011 its name was changed to Waryński Grupa Holdingowa (Waryński Holding Group). Mars Fundusz Inwestycyjny Zamknięty (Mars Closed Investment Fund) holds a majority stake in the company.