Zeitgeist will build a serviced apartment building in Cracow combined with a student section

June 2022

Zeitgeist Asset Management, a company specializing in development services and asset management for private and institutional investors, has signed another agreement in the forward purchase formula for the acquisition of land in Cracow - 0,84 ha at Racławicka Street 48. In cooperation with a local developer, Activ Investment, it will create a building here, including serviced apartments rented for a short period of time, partly also intended for accommodation of students. The project is scheduled for completion in the third quarter of 2024, at which time the building will be handed over to the Zeitraum subsidiary, which will be the operator.

After the pandemic, life in Cracow is slowly returning to normal, with tourists and students visiting the city again. In order to satisfy the housing needs of both, Zeitgeist has planned an investment that will be built in Krowodrza district, at 58 Racławicka street. The forward purchase model in this case means that both parties of the agreement, the seller and the buyer, have acquired the investment property. Zeitgeist undertook to buy the building after its completion and provided advance financing for individual stages of construction.

This is another transaction of this company in Cracow, next to three other projects, including revitalization of the Main Post Office building on Wielopole Street. At Racławicka Street, Zeitgeist plans to construct a building with an underground garage, including a section with serviced apartments (approx. 182 apartments, 6222 m2) and student rooms (approx. 248 rooms, 4650 m2). Upon completion, the development will be handed over to the developer's subsidiary, Zeitraum, which will be its operator. For Zeitraum, this will be the second property - after the student house at Koszykarska 33 in Cracow - in its portfolio of Polish rental properties.

"Cracow is very popular among both Poles and foreigners, who like to come here on business, to relax or to get an education. Accommodation of a good standard is highly sought after. So we decided to build a facility that would meet the needs of many types of people at the same time. We have an interesting idea and a building permit, so we are starting works at full speed" - says Peter Noack, CEO of Zeitgeist Asset Management.

As a developer operating for over 26 years, we have experience in the implementation of residential investments, constantly seeking new ways of development. Responding to market needs we will create a unique project for Zeitgeist Asset Management and provide the highest quality, which can be confirmed by thousands of satisfied customers of our company. Many years' experience, qualified team, know-how and knowledge of the market and clients' needs make us enthusiastic about starting a new chapter in the company's business history - adds Ms. Monika Kudełko, Strategy and Marketing Communication Director of ACTIV INVESTMENT Sp. z o.o.

Attractive location

The advantage of the location is the close proximity to important Cracow universities, including the AGH University of Science and Technology, the University of Agriculture, the Pedagogical University and the Cracow University of Technology. In addition, the building will be located in the vicinity of the very center of Kraków, where the business life is located, as well as numerous recreational areas, monuments and stores.

Rooms in the apartment part will mainly consist of three or four beds, although there will also be classic singles and doubles. In the student section single rooms will prevail. Self-service laundry facilities will be provided in both parts. Moreover, in the underground garage there will be ten charging stations for electric cars and 104 places for bicycles, some of them outside the building. Not without significance is also the green aspect of the location of the launched investment. There are as many as four parks in the immediate vicinity (St. Vincent á Paulo Park, Krakowski Park, Jordana Park and Kleparski Park). Guests will also be able to enjoy the charms of Błonia, one of Europe's largest green areas located in the city center, which is perfect for walks or for people who value an active lifestyle (runners and cyclists). Moreover, many entertainment and cultural events take place here.

With students in mind

Currently, there are over 1.2 million students in Poland. According to the latest analysis carried out by CBRE, only every tenth student can count on accommodation in a state-owned dormitory - there are only around 80 thousand beds available in Poland. In Cracow alone, there are almost 130 thousand students (including over 9 thousand foreigners) at 15 public and 9 private universities. At the same time, places in student halls of residence are the most popular among various forms of tenancy. Therefore, student residences created by private investors fill a very important niche, meeting the basic need of students - a comfortable place to live, study and integrate.

"In our experience, students are looking for accommodation in modern surroundings and seamless access to technology. We've always had full occupancy in our student house on Koszykarska Street, so it's clear that we need to create more accommodation options for students in Kraków," says Zdena Noack, Managing Director of Zeitraum Student Housing. - After the success of our Czech dormitories, we know exactly what young people expect from us and that's the standard we'll offer in our new investment at Racławicka Street. Our own platform zeitraum.re, which is used to book rooms and sign contracts in an easy way, helps us to achieve that" - she adds.

Consultants from the DWF law firm were involved in the process of creating the investment.

Zeitgeist Asset Management, headquartered in Prague, specializes in development services and asset management for private and institutional investors. The company has operations in the Czech Republic, Poland, Hungary and Germany. Since its founding in 2014, Zeitgeist has grown rapidly, currently managing assets of approximately €800 million.

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