London, England, 15 June 2021 –Cain International’s European Real Estate Opportunity Fund I, and its local development partner, White Star Real Estate, have successfully completed the sale of all residential units and leased all commercial space at Fabryka PZO, their 21,500 sq m mixed-use scheme in Warsaw’s Praga district on the site of the former Polskie Zakłady Optyki factory.
The residential element of the project offers 121 apartments in a vibrant neighbourhood favoured by families and young people.
The partnership has secured a new multi-year lease with ZTM (The Warsaw Public Transport Authority) for its approximately 13,500 sq m headquarters. ZTM is due to take occupancy early 2022 and joins Zdrofit, the Polish gym operator which agreed a lease for 1,766 sq m, and Aurovitas Pharma, the international pharmaceutical company, which agreed a lease for 1,159 sq m of Grade A office space in an adjacent building developed by the same joint venture last year.
Businesses and residents at Fabryka PZO benefit from a two-level underground car park, an outdoor car park providing over 200 parking spaces, and amenities for cyclists.
The mixed-use scheme also offers a food hall, coffee shop, restaurant, as well as a state-of-the-art gym. The location takes advantage of public transport and is close to the Skaryszewski Park and Kamionkowskie Lake.
Richard Pilkington,Head of European Real Estate at Cain International, said: “Warsaw is one of Europe’s leading hubs for innovation and is an increasingly popular destination for domestic and international talent, with a strong demand for high-quality residential and office spaces as a result. To have fully sold the residential units and let the commercial space at Fabryka PZO, despite the pandemic, is a strong endorsement of not only Warsaw’s ongoing appeal, but our firm belief that best in class assets in both gateway and challenger cities will continue to thrive in a post-pandemic economy.”
Bartosz Prytuła, Managing Partner at White Star Real Estate, said: “The inflow of new companies and services is gradually changing the character of Praga district. The growing trend of businesses taking space on the right side of Vistula river is driving the residential market and new developments of commercial projects. Recognizing the potential of this area, we are implementing new office and residential projects in this part of the city – Fabryka PZO, PZO 2, or Praga 306, which was already implemented a few years ago, and designing green areas and public spaces that will be the perfect addition to a wide range of services that have been long awaited by the residents of this unique district. Participating in the development of Praga is very important to us, as this district is perfectly connected with the center of Warsaw, and still has a lot to offer to both residents and investors. We believe that PZO will become an example of a project that has not only been restored to its glory, but more importantly has been transformed into a valuable facility for the everyday life of residents of Warsaw.”
Cain’s European Real Estate Opportunity Fund I, which closed in May with €324 million in capital from its investors including €70 million from Goldman Sachs’ Vintage Funds has invested 70% of the commitments across several European gateway cities, including Dublin, Paris, and Madrid as well as projects in Krakow and Warsaw, where the firm has partnered with local operator White Star Real Estate. The fund’s remaining capital will be used to target opportunities in the residential sector in markets where Cain has strong investment exposure.