Orco Property Group announces acquisitions of plots for new investments in Warsaw

Orco Property Group, a leading investor, developer and asset manager in the Central European real estate and hospitality market, is pleased to announce successful acquisitions of plots for new investments in Warsaw: 22.4 ha at Okólna Street in Marki for a new logistic centre, and 4.7 ha at Przy Parku Street for phase II of the Drawska residential development. With these new plot acquisitions, ORCO reinforces its position on the Polish real estate market in both the residential and logistic sectors.

The newly purchased site at Okólna st. in Marki consists of approximately 22.4 ha, located in Zone I of Warsaw’s warehouse area. The property has direct access to Warsaw’s city centre - just 12 km away, and is positioned just off the Baltic Highway (E-67), the main transport route. The site includes an existing income-producing asset with usable area 38,000 sqm. This existing asset will eventually be refurbished, subsequent to the phased development of ca. 50,000 sqm of new A-class warehouse space. The development work for the project has just started with a competition for design services. It is envisaged that the construction works will commence late 2008, with completion of the 1st phase during 2009. Orco Property Group will deliver the new warehouse space in accordance with the principles of sustainable construction, principles which are adopted for all new projects developed by the Company. The estimated cost of the investment is 60 million Euro.

The acquisition of the new plot at Przy Parku st. will serve as the natural second phase of the Drawska st. residential project in the Ochota district of Warsaw. The Drawska st. residential development has progressed in a very satisfactory manner with validated building permission already issued, and construction ready to commence Q1 2008.

The new Przy Parku plot measures 4,674 sqm, and will provide approximately 50 superior standard fully finished apartments with immediate access to Szczesliwick Park. Following selection of the Architect, design works are to start immediately. The construction works are planned to commence in Q3 2008, with project completion anticipated in Q4 2009.

The acquisition of new plots has a strategic meaning for Orco Property Group as it reinforces the company’s solid position on the Polish real estate market in very fast developing residential and logistic sectors.

Apart from Drawska ORCO, is currently carrying out other significant residential developments in Warsaw: Szafirowa Aleja in Białołeka district, Klonowa Aleja in Targówek district, not mentioning the company’s flagship luxury apartment projects – Mokotowksa 59 and Zlota 44. The company is also expanding into new regions in Poland with its innovative housing estate to be developed in Szczecin.

Both of the new ORCO projects – Drawska II and Marki, will be sustainable in terms of the end product, and the way it will be constructed. The implications of sustainable solutions and the implementing of such methods is part of ORCO’s development strategy for all projects.

source : Orco Property Group