Investment firm Arcapita Bank, based in Bahrain, has formed two joint ventures with Spanish residential developer Layetana Developments to construct approximately 1,500 mid-income apartments in central Warsaw, for a total development cost of over PLN1.1 billion ($407 million, €291 million).
Arcapita and Layetana will co-invest in the acquisition of land, development and marketing for two separate projects in the residential districts of Mokotów, in south Waraw, and Zoliborz, in north Warsaw.
The joint ventures, which will be managed from Layetana’s offices in Warsaw and Barcelona, is being funded with a majority investment from Arcapita with a minority investment from Layetana. The two firms have plans to develop future residential projects in Poland, with a view to expand to other Central and Eastern European countries down the line.
“These are the first two hopefully of a series of investments in Poland,” said Muhannad Abulhasan, head of Arcapita's European Real Estate business. “We’re playing on what is happening with increased wealth and affordability in the region, as well as the desire of large segments of the population to update their living standards.” Abulhasan added that the emergence of the residential mortgage market also offers attractive real estate investment opportunities.
Arcapita’s has other similar partnerships with development companies in in the US, Europe, the GCC and Asia. These partnerships have a transaction value to date of over $7.5 billion, according to Abulhasan. Arcapita has offices in Atlanta, London and Singapore as well as Bahrain. To date, the Bank has completed 61 transactions with a total value of almost $20 billion and has an equity capital base in excess of $950 million.
Layetana is headquartered in Barcelona but also has offices in Warsaw.