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Murapol, a leading home builder in Poland, has just announced that it joined forces with EPP, which is the largest shopping centre manager in Poland in terms of GLA. The notification of an intended concentration was submitted to UOKiK on 22 February 2024. The companies intend to establish four joint ventures to develop housing projects. The enterprises established by EPP and Murapol plan to purchase land and construct residential buildings to sell in Czestochowa, Kielce, Poznan and Tychy. EPP’s portfolio in Poland consists of 29 retail properties and six office complexes. In the four cities where the joint projects are planned EPP manages the following properties: M1 Czestochowa, Galeria Echo, Power Park Kielce, Astra Park, King Cross Marcelin, M1 Poznan, Malta Office Park, and Power Park Tychy. The partners are currently working out cooperation objectives and projects details. It is not certain if those housing projects will be related to commercial properties managed by EPP. However, presumably, the contemplated projects include redevelopment or extension of selected facilities and partial or complete change of use.

In March 2024, Develia also concluded a joint venture agreement. The developer started cooperation with investment funds controlled by TFI Rockbridge, Derby Investments, and a group of retail investors. As part of the venture, the partners will build 1,600 apartments in Gdynia’s district of Leszczynki with the aggregate usable floor space of 90,000 m². Develia will hold a 50.01% interest in the joint venture in exchange for a cash contribution of PLN 75m.

Several weeks ago Budimex and Apricot Capital Group filed a request with UOKiK for clearance for a joint venture to build a housing complex in Poznan. The project will involve the construction of around 420 flats. Apricot, a home developer, has a track record of joint home development projects with Budimex in Warsaw where Apricot was the contracting authority and Budimex was the general contractor. Budimex’s representatives announced that the company was open to cooperation also with other partners in diverse property development projects of any kind. However, the return to the residential construction market does not mean that Budimex will resume large-scale business operations in the sector as those that had been pursed by Budimex Nieruchomosci, a company the Budimex Group disposed of a few years ago. This time Budimex focuses on achieving greater flexibility in property development projects.

Therefore, since there is a shortage of valuable land for property development projects in many Polish cities, starting such ad hoc partnerships appears to be the right move as the situation in the housing market is highly volatile. The joint venture model ensures a more efficient utilisation of the partners’ resources and a more optimum distribution of costs and risks.

For more information about home developers in Poland and their plans, see Spectis report: "Residential property developers in Poland 2024-2029".