Resi4Rent Echo Investment starts a new business line. Warsaw, May 2018

Transcription

1 Resi4Rent Ech Investment starts a new business line Warsaw, May 2018

2 Ech s new business line Resi4Rent: the largest apartment rental platfrm in Pland 1 Gdańsk (294 units) 30% 1,200 units 1 Pznań (143 units) 1 Warsaw (1,308 units) 4 Ech s stake in the platfrm in 4 prjects under cnstructin (1st phase) the leader f the financing cnsrtium fr the 1st phase 2 Wrcław (573 units) Łódź (211 units) 1,700 units 5-7k units 2 Kraków (388 units) in 7 prjects f 2nd and 3rd phase targeted platfrm size within 3-5 years 2

3 Ech s new business line Resi4Rent: peratinal principles ECHO S BENEFITS The platfrm t be develped as JV with R4R S.a r.l cntrlled by ne f the wrld s premier investment managers Ech Investment will prvide planning, design and develpments services t R4R platfrm R4R will lead the peratinal management in-huse The platfrm has already secured ver 2,900 units R4R aims t perate 5,000-7,000 units within 3-5 years, t ffer multiple chice f lcatins and cities t clients That size creates synergies f scale and it is suitable fr internatinal lng-term investrs Ech will cnsider its strategic ptins when the platfrm achieves its suitable size The final agreement is subject t antimnply cnsent Targeted apartment split: Apartment split Apartment size 1-rm 40% 25 sqm 2-rm 50% 40 sqm 3-rm 10% 58 sqm Entering the new and under-supplied segment as a respnse t the needs f urban migratin and scial trends Increase f the scale f the residential business Enrichment f the mixed-use destinatin schemes 3

4 Market cntext Pland seeks new and mdern residential stck OVERCROWDED HOUSEHOLDS The average hme cntains 1.1 rms per persn, significantly less than the OECD average f 1.8 rms per persn and ne f the lwest rates in the OECD LACK OF QUALITY APARTMENTS 57% f the stck has been built in Majrity f the buildings are lw-quality early and late-scialism era type buildings (cncrete slab r wielka płyta ). Only 11% f husing stck is mdern Almst entire rental stck belngs t private individuals NEW TRENDS Accrding t Eurstat, almst 10% f ppulatin has changed the residence within the preceding 5 years ( ) cmparing t ca. 4% just 5 years befre ( ), clearly indicating increased mbility Renting instead f wning is becming increasingly ppular especially amngst yunger generatin Accrding t Eurstat, less than 5% f rental stck is ccupied by tenants n market terms (n gvernment subsidy) The mismatch between supply and demand fr gd quality rental apartments has been fuelling the steady increase in market rental prices Belgium Nrway Ireland United Kingdm Luxemburg Switzerland Spain Netherlands Finland Denmark Sweden Germany France Prtugal Iceland Estnia Austria Slvenia Italy Czech Republic Latvia Hungary Greece Slvak Republic Pland Rms per persn 2,2 2,1 2,1 2,0 2,0 1,9 1,9 1,9 1,9 1,9 1,8 1,8 1,8 1,7 1,6 1,6 1,6 1,5 1,4 1,4 1,2 1,2 1,2 1,1 1,1 1.8 OECD s average 1,0 1,5 2,0 2,5 Surce: Better Life Index (2017), OECD 4

5 Market cntext Residential fr sale market in Pland 53% 72.7k f apartments cmpleted in in CEE are lcated in Pland number f units sld in 6 plish majr cities in 2017 high demand driven by fundamentals 30% Wrcław - 19 Kraków - 18 Warsaw - 16 estimated prtin f apartments bught in 2017 fr cash (mst prbably t be rented) Number f new apartment sld in 2017 per 1,000 inhabitants: Budapest - 4 Bucharest - 3 Lndn - 3 Prague - 6 Surce: REAS 5

6 Market cntext Average grss asking rent in PLN/sqm in buildings built since 2005 steady increase Percentage f inhabitants living in rented apartments 54% - Germany 34% - Denmark 30% - Austria 25% - France 24% - United Kingdm 23% - Czech Republic 15% - Pland Surce: Eurstat Surce: Prperty Index reprt by Delitte 6

7 Cmmitted prjects 1st phase Brwary Warszawskie, Warsaw, ul. Grzybwska 58 WARSAW 28,500 sale transactins f new apartments in , ,000 estimated number f apartments fr rent Surce: REAS 451 UNITS 67.0 PLN/SQM average mnthly net rent Q develpment end One f the mst attractive residential lcatins in Warsaw First premium quality residential ffer in the rapidly develping business district in the heart f Warsaw Lack f mdern husing available fr lng-term rental in the surrunding area 7

8 Cmmitted prjects 1st phase Wdna, Łódź, ul. Wdna 25 ŁÓDŹ 3,300 sale transactins f new apartments in ,000 estimated number f apartments fr rent Surce: REAS 211 UNITS 43.9 PLN/SQM average mnthly net rent Q develpment end Third largest city in Pland with increasing number f emplyers, entering the market One f the mst ppular cities amngst BPO (Business Prcess Outsurcing) businesses 8

9 Cmmitted prjects 1st phase Rychtalska, Wrcław, ul. Zakładwa/Słnimskieg WROCŁAW 12,100 sale transactins f new apartments in ,000 estimated number f apartments fr rent Surce: REAS 303 UNITS 52.3 PLN/SQM average mnthly net rent Q develpment end Gd residential lcatin 10 minutes frm city centre Next t the river and bike paths in gd leisure area One f the mst ppular cities amngst BPO businesses 9

10 Cmmitted prjects 1st phase Kępa Mieszczańska, Wrcław, ul. Dmwskieg WROCŁAW 12,100 sale transactins f new apartments in ,000 estimated number f apartments fr rent Surce: REAS 270 UNITS 56.2 PLN/SQM average mnthly net rent Q develpment end Gd lcatin 8 minutes frm city centre Prximity f bike paths and newly renvated riverbank One f the mst ppular cities amngst BPO businesses 10

11 Resi 4 Rent phases I - III Secured develpment f the platfrm Prject City Units Prjects under cnstructin phase I Resi area (sqm) Schedule Targeted budget (mln PLN) Targeted Annual Stabilized Rents (mln PLN) Brwary Warszawskie Warsaw ,000 Q Q Wdna Łódź 211 7,800 Q Q Rychtalska Wrcław ,400 Q Q Kępa Mieszczańska Wrcław 270 9,300 Q Q ,235 47, Prject in preparatin phase II Taśmwa Warsaw ,300 Q Q Wita Stwsza I Kraków 198 7,100 Q Q Wita Stwsza II Kraków 190 7,000 Q Q % LTC targeted levarage f the 1st phase Ordna Warsaw 265 9,600 Q Q ,245 45, Prjects under preliminary agreements phase III Gdańsk , Pznań 143 5, Wrnicza Warsaw 229 8,100 Q Q ,800 TOTAL 2, ,400 11

12 Fr mre infrmatin please cntact EMIL GÓRECKI Investr Relatins Manager Ech Investment S.A. ECHO INVESTMENT al. Slidarnści 36 Kielce, Pland