Develia has concluded a final sales agreement for a real estate property located on Kolejowa Street in Wrocław with a subsidiary of AFI Europe. The transaction value amounts to PLN 50.5 million (ca. €11.75 million). The sale of the Wrocław land property is a part of Develia's strategy of divestment of its commercial real estate portfolio.
The subject of the agreement between Develia and the subsidiary of AFI Europe is a land property located at 8 and 10 Kolejowa Street in Wrocław, covering approximately 5.5 thousand square meters.
"As planned with the buyer in August this year, we have finalized the sale of this investment property land on Kolejowa Street in Wrocław. This is a prime plot in the city center with a building permit for commercial development, and we are pleased that it has been acquired by an experienced investor. As for us, in line with our business priorities, we will reinvest the obtained funds in further expansion in the residential sector and gradually, diversifying our operations, also in the student housing segment. Closing this sale on favourable terms marks a significant achievement for us at the end of the year, as it brings us closer to fulfilling our objective of divesting our commercial real estate portfolio - one of our strategic goals for 2024-2028", said Andrzej Oślizło, CEO of Develia.
In May 2023, Develia obtained a building permit for an office and hotel facility with retail and service components on the Kolejowa Street plot. The final sales agreement for the property was signed with a subsidiary of AFI Europe, a division of AFI Properties, a leading development, investment, and management company operating in Central and Eastern Europe. Its portfolio includes office, retail, residential (including PRS), and mixed-use projects.
"This acquisition confirms AFI Europe’s position as one of the most active investors in the region’s real estate market. Over the past two years, we have built one of Poland’s largest PRS portfolios - AFI Home now includes 1.7 thousand ready-to-lease units. Since autumn, our first project of this type has been operating in Wrocław. The capital of Lower Silesia and the third largest city in Poland in terms of the number of inhabitants is a natural place for our growth. We will present our plans for developing the Kolejowa Street site in the coming months", commented Sebastian Kieć, CEO of AFI Europe Poland.
Develia’s commercial property portfolio still includes Arkady Wrocławskie, which officially ceased operations in Q3 of this year. In December 2023, Develia signed a preliminary sale agreement for this property with Vastint Poland and maintains its goal to finalize the transaction by the end of August 2025.
