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Kulczyk Silverstein Properties Acquires New Properties

Jul 31 2012

Małachowskiego 1

Kulczyk Silverstein Properties (KSP), an international investment and development firm, has been expanding its portfolio. In July 2012, the company acquired two high class office buildings situated in the center of Warsaw. KSP objective is to deliver to the market modern office and retail space in prestigious locations.

Kulczyk Silverstein Properties – a joint venture of Kulczyk Real Estate Holding and Silverstein Properties – purchased from HOCHTIEF Development Poland two office buildings located in a prestigious part of Warsaw at Małachowskiego Square and on Mazowiecka Street. This is the second transaction of KSP after the acquisition of the Stratos Office Center in August 2011.

„The two new investments fall closely in line with  the KSP strategy of creating a portfolio of commercial properties in the best locations of the largest cities of the CEE region. Thanks to their extraordinary location, architecture and usability, the acquired buildings offer great opportunities to increase their value. After completion of the modernization and revitalization, the office buildings will meet the highest standards and will become the most prestigious addresses in the capital city” – claims Piotr Krawczyński, Managing Director and Board Member of KSP.


The prestige of historic properties

The first building is located in an attractive part of the capital city – at the Małachowskiego Square – in the vicinity of the Victoria Hotel and the Zachęta Gallery. The building was designed by Jan Heurich and erected in 1910. Originally its destination was to house the library and art collection of the Krasiński family, however during the construction, the building was acquired by Count Edward Raczyński who decided to use it as an elegant urban tenement house with a store situated on the ground floor. Following the World War II, the building was converted into the headquarters of the Polish Post Office. Due to the historical and architectural value, the property is under the supervision of the monument conservator.

Ultimately, the Małachowskiego property will be comprised of an existing office building with 5000 sq m and a newly constructed adjoining building located in Traugutta Street with the space amounting to 7 600 sq m, as well as retail and storage area with 1500 sq m. Additionally, for the tenants and their guests, there will be available 100 underground parking spaces. Currently, the building is under  comprehensive renovation and redevelopment, which will adapt it to the highest standards. The property will offer modern infrastructure i.a. raised floors, suspended ceilings, BMS and HVAC system. The renovation is expected to be completed in mid-2014.

The second building is a historic 4-floor property with 3 000 sq m of commercial space located in central Warsaw at the intersection of Świętokrzyska and Mazowiecka Streets. For several years, the building served as the headquarters of Wydawnictwa Naukowo-Techniczne. The façade of the building is under the supervision of the monument conservator.

The property offers 2 250 sq m of office and 750 sq m of retail or service space located on the ground floor and the entresol. Currently the building is under comprehensive modernization. After its completion – expected in August 2013 – the property will achieve the highest A class standard.


Dynamic development

Acquisition of the two buildings is in line with the KSP investment strategy of searching and acquiring properties in prestigious locations, with excellent access to public transportation, of exceptional architecture and with a guarantee of increase in value in the medium and long term.

„ We focus on investments in the CEE region’s largest cities with high economic growth perspectives. This is a segment of the market with a great potential. I believe that our international team of experts, combined with the competence of Silverstein Properties – one of America’s leading developers - and Kulczyk Investments’ know-how are unique aspects which allow us to play an important role in the first league of investors” – says Edgar Rosenmayr, Managing Director and Board Member of KSP.

The dynamic development of KSP is consistent with the strategy of achieving an important position in the property market in Central and Eastern Europe. “KSP shareholders are two reputable international investment groups which significantly strengthens our market position. Strong capital and skilled resources give KSP the possibility of dynamic development and branding activities – e.g. the Polish Olympic Team sponsorship by Kulczyk Investments Group – additionally supports our reputation on the Polish and international market. Such synergy is a foundation of our development strategy in the CEE region” – emphasizes Piotr Krawczyński.  

Commenting on the acquisition Larry Silverstein, President and CEO of Silverstein Properties: “Our partnership is going very well and I am thrilled with the properties we have acquired so far.  The Małachowskiego and Mazowiecka buildings are significant assets and I look forward to further growing our portfolio.”

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