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Deal 5: Marvipol Development Head of Legal Maria Brzozowska on Sale of Three Residential Projects in Warsaw

Deal 5: Marvipol Development Head of Legal Maria Brzozowska on Sale of Three Residential Projects in Warsaw

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On February 2, 2021, CEE Legal Matters reported that Greenberg Traurig had advised companies in the Marvipol group on the sale of residential and commercial units in three built-to-rent residential projects in Warsaw to Swedish company Heimstaden Bostad. CEEIHM spoke with Maria Brzozowska, Head of Legal Department at Marvipol Development, to learn more about the sale.

CEEIHM: What is Marvipol’s story? How is your company structured and what area does it operate in?

Maria: Marvipol Development Capital Group has been operating in the real estate market since 1996. Since the very establishment of our company, the quality of all our projects has been of great importance to us. Marvipol Development has been listed on the Warsaw Stock Exchange since 2008 and our core business is divided into two segments: residential and warehouses.

We have completed 33 residential projects consisting of more than 7,500 residential units with a total usable floor area in excess of 448 thousand square meters.

Our residential offer is diversified and targeted at a varied range of clients. It is made up of units in distinctive buildings and is increasingly popular with clients, as reflected by the group’s sales performance. The strategy for growth of the group’s property development segment provides for an increase in the value and volume of apartments sold with a margin of more than 20 percent on residential sales.

In the warehouses' segment, Marvipol Development is a JV partner of Panattoni Europe. To date, we have invested in 12 industrial properties with a gross leasable area of 460 thousand square meters.

CEEIHM: It was reported that your company recently sold residential and commercial units in Warsaw’s Unique Tower, Moko Botanika, and Studio Okecie projects to Heimstaden Bostad. Could you tell us a bit more about the deal? What, in particular, made these projects attractive to the buyer?

Maria: The transaction comprised of three projects in Warsaw with 647 residential units of 29,851 square meters and commercial units of 1,068 square meters for approximately PLN 381 million (EUR 83,9 million) and an option to acquire an additional 60 apartments. The acquisition is structured as a forward purchase for the Unique Tower, and a forward funding commitment for the other two. The transaction was challenging from a legal point of view as each project is at a different stage of completion, the legal nature of the subject of the transaction varied and therefore required a different package of collaterals. I am particularly proud of the fact that, for the Unique Tower sale, we have created a pioneering legal solution for the market allowing for greater flexibility for PRS investors.

The projects are situated in prime areas of Warsaw and feature an optimal structure of apartments and convenient amenities for future residents.

Moko Botanika, Studio Okecie, and Unique Tower are attractively-located projects that stand out for their quality and functionality. Being able to attract an investor as acclaimed as Heimstaden validates our operational philosophy of placing the quality of our investments front and center. The agreement with Heimstaden is in line with Marvipol Development’s growth strategy that includes diversification of the customer base for our projects.

CEEIHM: What is the next move for Marvipol after the sale? What other projects are on the horizon?

Maria: The company is looking for new land opportunities to replenish its land bank and expand operations. We are starting sales of new projects in Warsaw and Gdansk in Tri-City in the first quarter of 2021 and we have bold goals for the second half of the year.

CEEIHM: Greenberg Traurig advised your company on this transaction. Could you tell us how the legal work was divided between the firm and your team?

Maria: This was a really complicated transaction, which required a lot of coordination of different teams: commercial, technical, and legal. The Marvipol legal team coordinated the work of all teams and was supported by Greenberg Traurig. In addition, Greenberg Traurig implemented agreed provisions into transaction documents and was responsible for the drafting of all legal documentation. The main negotiations were led by myself with great support from GT Partner Agata Jurek-Zbrojska in some particular aspects. This was a great teamwork achievement. 

CEEIHM: Finally, what were the main qualities of Greenberg Traurig that made you choose it as your company’s advisor? 

Maria: GT’s real estate lawyers specialize in different areas of real estate, which allows the team to provide comprehensive transaction advice and address even very specific legal issues in a timely manner. They effectively cooperate with other GT practices, which is crucial for the most complex real estate transactions. The lawyers in Agata’s team are responsive and very thorough. They also represent a business-oriented approach, which adds substantial value to our transactions.

Originally reported by CEE In-House Matters.

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