Focused on Bolero

Jerzy Motz, the president of the board of Real Management: In 2008 we built Good Point Puławska I with an area of 43,500 sqm. This first stage has already been sold. It was purchased by French fund IXIS AEW Europe. Next we carried out two stages: Good Point II and III, which constitute a logistics centre with an area in excess of 52,000 sqm. We are currently in the process of finding an investor for the centre. It is an appropriately diversified product in terms of tenants and areas, and more than 50,000 sqm is the scale of investment sought after by investment funds. Colliers is our exclusive agent in the process for selling the project.

The other two completed projects are both office buildings, is that right?

In April we put into operation the Corner House office building on ul. Puławska with an area of app. 4,500 sqm, the developer and co-investor of which is Real Management. The building has also been 100 pct leased. The main tenant is Bank Pocztowy, which has signed a lease contract for five years. One of our largest projects is Bolero Office Point with an area of 11,300 sqm. Bolero is also fully commercialised.

If things are going so well, what next?

We are pleased with the interest in Bolero due to its location: ul. Łopuszańska, which has excellent transport links thanks to the new Warsaw ring road and the WKD municipal rail service. Our building corresponds well to the specificity of the BPO industry by offering good access and parking spaces. Another two stages are being designed with a total of 20,000 sqm. The launch of the second stage of the Bolero project is to take place in the summer of 2015 and should finish in Q1 2016. Bolero II will offer a warehouse and technical area of 3,000 sqm as well as an office area of 2,000 sqm. After putting this stage into operation we are planning to construct the final office building with an area of app. 15,000 sqm, which will crown the entire complex. The completion of the construction work is to take place in mid-2017. These are our plans. Of course they will depend on the speed of the leasing process, but negotiations with potential tenants are already taking place – and we have made preliminary arrangements concerning the commercialisation.

And has Real Management now ended development in the warehouse sector?

It seems that we are at a good point of the cycle for the warehouse sector. At this stage we are mostly concentrating on the sale of finished projects and after the sale we will possibly consider other projects in locations other than Łubna.

Is Real Management planning any other projects apart from office facilities?

In December 2014 we applied for a building permit for the Centrum Cegielnia retail facility in Góra Kalwaria. We are planning for the project to be an outlet park with a leasable area of app. 15,000 sqm. It will have one larger tenant – a home and garden company. The style of the building will reference the old brickyard it is to be built on the site of.

And what about other directions of development?

We are looking for new projects. We are at the stage of preparing our investment strategy for the next four or five years. We will consider the purchase of development projects or partially commercialised ones with an option of extending them. These would be both office and logistics projects.

Where?

We are mainly interested in Warsaw and its immediate area. We are also considering other larger cities.

Are you considering raising addition funds from bond issues or finding partners for your projects?

We are considering acquiring external capital through increasing our debt, because our company has a relatively low debt to net asset ratio, or through various financial instruments, which will be used to ensure faster and broader expansion of Real Management in the fields I have already mentioned.

And what about the sales of residential projects, particularly your flagship project Rezydencje Pałacowa? What are you planning next in terms of residential projects?

We only have eight houses still available for purchase. We already have a building permit for the second stage but we are suspending the final decision for the launch of the project until the end of June 2015.

What business goals would you like to achieve in the near future?

We will definitely be concentrating on the location where Bolero is situated. We have an almost 2 ha site there and we want the most of our energy at Real Management to be directed there.