Israeli investor Aurec expands Polish PRS portfolio

Israel-headquartered family office Aurec has expanded its residential portfolio in Poland with the acquisition of a private rented sector (PRS) scheme in Warsaw for over PLN 100 mln (€22 mln).

The asset, at 186 Pulawska Street in the Polish capital, was acquired from developer Matexi Polska. JLL advised the investor on the deal.

The investment marks a new addition to the LivUp portfolio – Aurec’s long-term residential rental brand. Aurec will be launching its Jagiellonska 36 project in Warsaw, with about 90 units, this autumn.

'Our strategy focuses on the selection of locations that will be attractive in terms of commute, and provide easy access to the city's main business centres,' said Roee Shamir, managing director of Aurec Capital Poland.

'This transaction is a proof of our belief in the development potential of the private rented sector in Poland. It also strengthens our position as the leading operator on the rental market in Warsaw, since our goal is to achieve a portfolio size of thousands of units in major cities in Poland.'

Like its other Polish PRS deals, Pulawska 186 was purchased in a forward funding arrangement. Developer Matexi plans to complete the asset towards the end of 2021 / start of 2022.

'International investors must operate in a build-to-rent model because there is a shortage of standing assets or portfolios of scale that could become the subject of transactions,' noted Maximilian Mendel, head of living investment at JLL. 'However, they need knowledge of the local market's particularities, which can be provided by a local business partner,' Mendel added.