New funds for LifeSpot to grow presence in Polish PRS market

LifeSpot, a long-term rental housing platform in Poland owned by funds managed by Ares Management and Griffin Capital Partners, has secured access to further capital from both parties. The investment will be used to support the development of rental housing and expand the platform’s presence within Poland’s fast-growing private rental sector.

“The PRS market in Poland still accounts for only about 0.1% of total housing stock, while the demand for apartments is high,” said Marek Obuchowicz, senior partner, Griffin Capital Partners. “The structural housing deficit in Poland is 1.5 million units, therefore, the PRS segment is particularly attractive to us as an investor, and we strongly believe in its development potential, which is why we decided to allocate further equity for the expansion of the platform to exploit this potential.”

The additional equity raised from Ares and Griffin Capital Partners will be directed towards further expanding LifeSpot’s portfolio, including the acquisition and construction of 2,500 units in cities such as Warsaw, Kraków, Gdańsk and Wrocław.

Since it was launched in 2021, LifeSpot’s portfolio has grown to 1,400 operating units and a further 1,800 units currently under construction. The existing portfolio is regionally diversified across major Polish cities, including Warsaw, Krakow, Tri-city, Wroclaw, Lodz, and Katowice.

The additional units are expected to complete in the next one to three years and will result in the company managing close to 6,000 units, making it one of the largest PRS platforms in Poland. Furthermore, the additional units will enable the Company to deliver on its investment strategy by increasing the availability of well-located, modern rental housing at affordable rental levels.

“Over the last three years, LifeSpot has quickly established itself as an important provider of quality and affordable rental housing in Poland,” said William Twemlow, principal, Ares Management. “We have seen strong demand from residents across the major cities experiencing persistent undersupply. We are pleased to increase our investment and continue building affordable rental apartments alongside our partners as we further support the company’s long-term growth.”