A consortium of banks, with Pekao Bank as a leader, Bank Gospodarstwa Krajowego and BNP Paribas Bank, granted over PLN 248 million in a construction and investment loan and PLN 15 million in a VAT loan for five Resi4Rent projects with apartments for rent.
The projects to be financed will provide a total of over 1.4 thousand apartments in Warsaw and Cracow. Three projects are already under construction, two projects will start in the coming months. This is the third tranche of Resi4Rent’s projects financed by banks and financial institutions.
“Our proven track record in building and renting out projects has translated into the trust of reputable banks, and we are grateful to our banking partners for that. This confirms the effectiveness of the strategy of Resi4Rent and its business model. This success would not have been possible without taking advantage of the international experience of our main shareholder, the professional development services of Echo Investment, which is also a co-owner of Resi4Rent, and the expertise of a team dedicated to building process management, leasing and apartment management. Another invaluable asset is the support we receive every day from Griffin Real Estate, one of the most experienced operators on the real estate market”, says Rafał Ryba, CFO of Resi4Rent.
“We are happy to structure and provide financing for another project of Resi4Rent, especially that it is the first platform that rents out subscription apartments professionally and it creates this market in Poland. Thanks to a unique combination of competencies of partners engaged in the project - Resi4Rent, Echo Investment and Griffin Real Estate - the platform is highly successful commercially in the rental market even during the pandemic. We believe that with the growing mobility of the Polish society and its expectations for more flexibility, the rental offered by professional entities will become an increasingly common alternative to owning your own apartment” says Dieter Lobnig, Director of Investment Banking and Real Estate Financing Department at Bank Pekao.
“The institutional rental sector is becoming an increasingly important part of the Polish commercial real estate market. We carefully observe this trend, we recognize great potential in this area and that is why we decided to engage in the project undertaken by Resi4Rent. We know the entities that have become involved as owners in the Resi4Rent platform, and we are more than happy to directly support the company's development. We would like to thank for the confidence and congratulate the company and our consortium partners," says Marek Kowalski, Director of Real Estate Financing Department at Bank BNP Paribas.
“As a national development bank, BGK has been improving housing conditions of Poles for years, thus contributing to the social and economic development of the country. Therefore, in cooperation with our well-known and experienced partners, we are pleased to support a project that will increase the availability of apartments on the market. We are happy to participate in a project with great potential, which expands the modern housing stock in Poland and complements the offer of the developers” says Maryla Posyniak, Head of Structured Finance Department at BGK.
Resi4Rent is the largest company that offers subscription apartments for rent in Poland. It was established in 2018 and will deliver 10 thousand units to clients by 2025. Currently, in its portfolio of completed buildings, under construction and in preparation, Resi4Rent has over 6 thousand units in Warsaw, Wrocław, Gdańsk, Cracow, Łódź and Poznań.
All of the Resi4Rent apartments are new, finished and equipped with necessary household appliances and basic furniture. The price includes Wi-Fi access to a panel that allows, among others, to manage contracts as well as to have a dedicated service office. For cyclists, Resi4Rent provides bicycle racks, and for motorists, the company offers the possibility to rent a parking space in an underground garage. Each apartment has a balcony or a garden. Resi4Rent's clients are mainly young people starting out their adult life, singles, foreigners, students, as well as families with children and seniors. 75% of the company's clients are under the age of 34.
