Atrium Group has agreed to acquire two residential properties, totalling around 650 units, located in Warsaw and Krakow in Poland, for €53 million.
Atrium will invest further into the properties in order to achieve the highest sustainability standards and a BREEAM certification.
“These transactions mark a step forward in our strategy to diversify our portfolio into the residential for rent sector and leverage growth opportunities that will allow us to continue to deliver strong, long term sustainable returns to our shareholders,” said Liad Barzilai, CEO of Atrium Group.
Both transactions are expected to be completed by the first half of 2022, with all apartments operational by the end of 2022.
Atrium said the acquisitions form part of the diversification strategy which targets the creation of a portfolio of approximately 5,000 residential for rent units by the end of 2025.
The first property is located in the Włochy district in the western part of Warsaw. The 541-unit building complex is scheduled for completion no later than Q2 2022, and will target young professionals as well as young families with units of various sizes and layouts.
The second property is being developed in Krakow, the second largest city in Poland and one of the leading centres of academic, economic, cultural and artistic life in the region. The 109-unit building is also expected to be delivered in Q1 2022.
“The assets, which will provide modern, purpose-built homes in high demand areas in Warsaw and Krakow, exemplify how we will seek to take advantage of strong macroeconomic fundamentals and urbanisation trends in locations where there is currently a lack of good quality rental apartments. We currently have an identified pipeline of a further 4,000 units in Poland as we work towards meeting our ambitious targets and we look forward to building on these initial investments over the coming months,” added Barzila.