BBI Development has signed a preliminary investment agreement with Liebrecht & Wood and will join forces on the delivery of Centrum Praskie Koneser, currently under construction in Warsaw’s Praga Północ district. The scheme will comprise 22,500 sqm of retail space and 22,000 sqm of office space and is scheduled to be completed in 2017.
The two companies will be responsible for the delivery of the office-retail portion of the investment, which makes up 59 percent of the total area. The remaining 41 percent, which includes the residential part of the project along with commercial space on the ground floor, will remain in the hands of BBI Development.
The Koneser scheme will comprise 22,500 sqm of retail space and 22,000 sqm of office space
Courtesy of BBI
Liebrecht & Wood will invest some zł.55 million in the project, whereas BBI Development will put in zł.21.8 million plus the land on which the scheme will be developed. Bank loans will provide some 70 percent of the financing for the project. The entire value of the project is estimated at zł.450 million.
BBI Development and Liebrecht & Wood have already cooperated on another project, the Plac Unii office-retail development located on ul. Puławska. One of the conditions Liebrecht & Wood posed for its involvement in the Koneser project is the prior sale of Plac Unii, which comprises 56,200 sqm and is scheduled to be delivered in October this year. As much as 90 percent of the retail and 60 percent of the office space has already been leased. Once the development is sold, Liebrecht & Wood will finalize the agreement with BBI on Koneser.
Centrum Praskie Koneser is a modern mixed-use complex due to be built within the next few years on the site of a former vodka distillery. The project will involve the development of a total of 70,000 sqm of usable space on a nearly five-hectare plot of land. Apart from 22,500 sqm of retail and 22,000 sqm of office space, Centrum Praskie Koneser will comprise 330 housing units. The investors want one of the historic buildings to house a museum, possibly operating under the aegis of the National Museum in Warsaw.
Since the onset of the project in 2010, BBI Development has already revitalized a historical guardhouse and an administrative building, parts of the Koneser project, transforming them into modern office space. Construction on the commercial portion is due to be launched in H2 2014. The companies will select the general contractor for the project together.
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