Walter Herz was exclusively appointed to prepare and manage the sale of an investment land plot located in Warsaw's Wawer district. The property was owned by one of the leading developers operating in the warehouse and logistics real estate sector.

By analyzing the site's development potential, changing its intended use, and preparing it for a residential project eligible for implementation under the IIP procedure, Walter Herz's advisors created additional value for the property and significantly enhanced its investment potential.

The property comprises a site of approximately 4 hectares. Under the Draft General Plan for Warsaw, the area is designated for multi-family residential development. Furthermore, the Integrated Investment Plan (IIP) procedure creates an opportunity to deliver a city-forming residential project with an estimated gross residential floor area (GRA) of approximately 34 thousand sq m.

The Draft General Plan designates the site as a mixed-use zone with residential development, allowing for a maximum floor area ratio (FAR) of 1.5 and buildings of up to 15 meters in height.

A major advantage of the property is its location. It is situated approximately an eight-minute walk from the railway station and directly adjacent to a bus terminus. The surrounding area offers a full range of urban amenities, including educational institutions, retail and service facilities, as well as green spaces. The commute to the center of Warsaw takes approximately 25 minutes by car.

Advisory That Creates Value

Walter Herz's involvement extended well beyond the standard property sales process. The team carried out a comprehensive, multi-dimensional analysis of the site's development potential, identified the optimal development scenario, and designed a commercialization strategy based on the property's long-term investment value. The process also included an analysis of the competitive landscape and the local residential market, the preparation of investment marketing materials, the identification and selection of prospective investors, and ongoing communication with potential purchasers.

A key element of the transaction was presenting a possible pathway for changing the land’s designated use and the development parameters that could be achieved under a future planning procedure. As a result, the property was presented as a development project with a defined investment potential, rather than merely a plot of land with its previous use.

– In the case of such properties, it is crucial to look beyond their current designation. Our task was to identify the real potential of the site, translate planning constraints into a clear investment product, and properly communicate this value to future buyers. Thanks to our knowledge of the market, planning procedures, and the expectations of residential developers, we were able to unlock the property’s capability, which was not visible when analyzing it solely through the lens of its existing use – says Emil Domeracki, Partner and Member of the Management Board at Walter Herz.

As Emil Domeracki emphasizes, understanding how developers analyze land, value potential usable floor area (PUM), and assess investment risks makes it possible to build a narrative focused on the future development product rather than solely on the size of the plot. This approach increases investor interest and enables owners to maximize the property’s value.

The completed transaction confirms the growing importance of “highest and best use” advisory, in which a property’s value is built through the analysis of alternative development scenarios, planning constraints, local demand, and the prospects for surrounding area development. It is often the potential of a future project, rather than the current use of the land, that determines its investment attractiveness and valuation.

Walter Herz supports property owners and investors in the sale of land, buildings, and development projects. The scope of services includes auditing a property’s potential, developing strategies to increase its value, preparing the sales process, reaching out to investors, and conducting transaction negotiations.