BGK acquires first Katowice project for rental housing fund

Poland’s state-owned bank BGK made a first step to purchase its first residential project in Katowice and signed an initial agreement with HM Inwest. The housing scheme will be acquired by the bank’s special purpose fund FSMNW Katowice based in Warsaw.

© HM Inwest; residential building to be erected on Pułaskiego St.

The 141 apartments will be included into BGK’s rental housing fund „Fundusz Mieszkań na Wynajem”. The nine-storey building is being erected on Pułaskiego St. close to the Three Ponds Valley. HM Inwest is a developer of the undertaking. The construction work was started in April. Eiffage Polska Budownictwo was appointed prime contractor of the undertaking. The company will earn PLN 24,1 million for the contract realization and is obliged to finish the works by October 2016.

According to the agreement signed between HM Inwest and FSMNW Katowice, the purchaser will acquire both the land (0,46ha) and the housing building. BGK launched the initiative „Fundusz Mieszkań na Wynajem” in 2014 and wants to buy about 3 000 apartments in the largest Polish agglomerations between the years 2015-2017. Apart from Katowice, the projects will be located in Warsaw, Tri-City, Kraków, Wrocław, Łódź and Poznań.

The BGK’s programme was created to stimulate social mobility and provide an alternative to mortgage-backed apartments buying. The inhabitants will be able to rent the apartments with furnished kitchens and bathrooms, and the properties will be manged by the landlord controlled by BGK. As the bank purchases whole buildings within this initiative, the rent per month can be lower by up to 20% when compared with market prices. The offer of Pułaskiego project has not yet been revealed.

„Bank Gospodarstwa Krajowego” (BGK) is Poland’s only state-owned bank. It was established in 1924. The bank manages several special purpose funds and a number of governmental programmes. Its mission is to support social and economic growth of Poland and the public finance sector in the performance of its tasks.