Crowdfunding success

The entry threshold was PLN 10,000. The capital will be invested in residential properties in Warsaw and some of the largest cities in Poland, their renovation and the subsequent sale of the apartments. The project will last from one to two years.

“The collection of declarations for the acquisition of shares in Mzuri CFI 4 has now been completed. It has been a great success for us because we were hoping to raise PLN 1.5 mln for the purchase of a single tenement building – however, the final sum was nearly five times that,” reveals Artur Kaźmierczak, the president of Mzuri CFI 4. This is the latest company set up by the Mzuri group as part of Mzuri CFI crowdfunding initiative for group investments in apartments for rent and that is also aimed at investors who have relatively small capital. The first of these companies, Mzuri CFI 1, raised more than PLN 1.5 mln at the end of 2014 for the purchase and renovation of a tenement house in order to subsequently sell apartments for rent . Following this, Mzuri CFI 2, which was launched in 2015, raised almost PLN 3 mln.

“We are pleased that the average capital paid in by investors has increased with each CFI project. One and a half years ago we started from a level of under PLN 25,000; this then moved up to PLN 35,000 and we have ended up with app. PLN 50,000 today, despite the fact that the entry threshold continues to be PLN 10,000 to make it possible for students, nurses and railway workers to make a profit out of real estate,” claims Roland Caban, the CFI project manager of the Mzuri group. Importantly, the time required to raise the capital has also shortened. “We needed six weeks to raise PLN 1.5 mln for the first initiative of Mzuri CFI. In the case of Mzuri CFI 4 we reached this level after three days and the final amount of over PLN 7 mln was raised within just two weeks,” adds Roland Caban.

Companies within the Mzuri group have also invested in their own enterprises, such as the PLN 100,000 invested in CFI 4 into which the management of the group paid in an additional PLN 150,000. Shares in the company have been acquired by a total of 142 shareholders. The company is interesting to not only to Polish investors but those from abroad: Russia and Asian parties have also declared an interest in acquiring shares in CFI 4. As a so-called “alternative investment” company, CFI 4 will be supervised by Poland’s Financial Supervision Authority. The Mzuri group has also announced plans for future CFI projects. “CFI 5 will probably have a development character, so our goal is to build new apartments for rent. We have also been continuing due diligence on other revitalisation projects in Poznań, Bygdoszcz and Warsaw, among others. We have been active in the property market in Poland since 1997 and nowmanage more than 2,000 apartments for rent, 500 of which are located in Warsaw, which is why we know very well which kinds of initiative are missing from the market,” argues Sławek Muturi, the founder of Mzuri and the president of the supervisory board of Mzuri CFI 4.