POLAND A statement acquisition – Tomasz Nowakowski of Lewandpol Group

Nathan North, managing editor, EurobuildCEE: Could you tell us a little about Lewandpol Group – its history, scale of operations, and key areas of activity?
Tomasz Nowakowski, director of real estate, Lewandpol Group: In recent years, the Lewandpol Group has focused primarily on renewable energy, implementing projects related to wind energy and photovoltaics. However, during our history, we have also developed and sold the Galeria Mazovia shopping centre in Płock, so we are no strangers to commercial real estate.

What prompted Lewandpol Group to purchase the Central Point office building in central Warsaw? What features of this property did you find particularly attractive?

From its earliest days, Central Point has been highly regarded by us. Primarily for its unique location. It is located in the very centre of the capital, yet it has no immediate neighbours that dominate or obstruct the view of the entire Warsaw skyline, which creates a sense of freedom and comfort while inside. It is one of only two office buildings in Warsaw located directly at the intersection of two metro lines, and upon exiting the Metro Świętokrzyska underground station, you basically find yourself in the atrium of Central Point. Additionally, it is 100 pct leased, has reputable tenants, and, importantly, is a young building. These features I have mentioned are crucial when it comes to office buildings. The size of the building was also crucial, as it aligned with our investment objectives. I expect that Central Point, as the name suggests, will remain a focal point of Warsaw’s office landscape for years to come.

This acquisition feels like you’re making a statement – and it also raises the question: why did a company that previously specialised in the development of photovoltaic farms decide to enter the office market at this moment? Is this part of a new strategy?

First and foremost, the decision was made to diversify the company’s investments and revenues. Real estate seemed like the ideal way to implement this. We then began to study the commercial real estate market and acquisition opportunities. We chose an office building because this asset class is now returning to favour since the pandemic and the significant decline in the supply of new office space in central Warsaw.

I am very pleased that we have become a symbol of a new trend in the commercial real estate market in Poland. Until now, Polish entrepreneurs have been cautious about large assets, especially when it comes to purchasing existing properties rather than developing them. I hope that Polish investors will ultimately come to dominate the investment market in our country.

What are your plans for further investments in the real estate sector? Do you intend to place greater emphasis on the office segment than before? Or perhaps on other asset classes? How do you assess the prospects for the Polish real estate market in the years ahead of us?

We are constantly monitoring the market and examining investment opportunities. We are focusing on Warsaw and the office segment, but also looking with interest at hotels. I believe that right now is a good time to buy. The global geopolitical situation and the worsening economic situation of our Western neighbours are having a significant impact on the Polish market. Therefore, the group of institutional investors is smaller than before the pandemic and the outbreak of the war. The drastic price increase in the residential market has resulted in a disparity between the prices per square metre of apartments and those of commercial properties. I hope that this difference will ultimately blur and that rents and the value of commercial properties will increase significantly in the future.