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Gdansk captures Czech Zeitgeist with PRS project

Prague-headquartered Zeitgeist Asset Management is expanding its portfolio of apartments for rent in Poland and has acquired a development project in the Oliwa district of Baltic city Gdansk.

The project at 34 Czyżewskiego Street entails developing four residential buildings with 210 flats for medium and long-term rent. JLL advised on the purchase of the property.

The scheme is located close to the city’s university of physical education and sports and Zeitgeist pointed out that the project is also close to the business hub of the Tri-City area. The apartments will be commissioned in March 2022.

Zeitgeist Asset Management has been present in Poland since 2016 and already has properties in Warsaw and Krakow. The investment in Gdańsk is the company’s first Polish development project built from scratch as Zeitgeist usually refurbishes existing buildings.

However, it said that a greenfield project allows it to have more influence, such as in the distribution of bathrooms and toilets, or the size of rooms. “Thanks to this, we can plan our properties for various types of clients,” said Peter Noack, co-founder and managing director at Zeitgeist Asset Management.

The project is being undertaken by Tri-City developer the BMC group.

Maximilian Mendel, head of the JLL residential investment team said that investors are currently forced to build to rent because there are no portfolios of standing assets of an appropriate scale. “So far, this has caused significant limitations in rapid portfolio expansions, as only a few developers have decided to partner up with funds.”

And he added that, “where the pandemic may affect the dynamics of retail sales and significantly extend the commercialisation process, partnering with investors using forward funding deal structures may become significant in protecting the financial liquidity of a development company.”

Zeitgeist has assets under management of €600 million.