Case study Pańska 73

The owner held an ageing office building in an attractive location in Warsaw’s Wola district. Upgrading the existing property would have required substantial capital expenditure without fully unlocking the potential of the location. The key challenge was therefore to develop a new strategy for the property that would enable a change of use, enhance its investment potential and ultimately increase the value of the asset. Timing was also critical. Changes to the planning framework meant that the process had to be carried out efficiently to secure the possibility of residential development before new restrictions came into effect.

Walter Herz analysed the planning framework, site parameters and the market potential of the location, and on this basis developed a strategy to change the property’s use from office to multifamily residential.

Our involvement went well beyond providing recommendations. Walter Herz acted as the investor in the development conditions process and coordinated the proceedings from start to finish. We were responsible for developing the value-enhancement strategy, assessing alternative development scenarios and identifying residential use as the most attractive direction for the property.

We managed the process of obtaining the development conditions decision, coordinated discussions with the municipal authorities and worked to secure parameters that would enable more efficient use of the site’s potential. In parallel, we identified prospective business partners for the next stages of the project.

The process resulted in securing a development conditions decision allowing for the development of a multifamily residential scheme comprising approximately 5,000 sq m of usable residential area. Walter Herz acted as the investor and the entity to which the development conditions decision was issued. As a result, our role extended from developing the strategy to enhance the property’s value to formally securing the planning basis required to pursue it.

The decision was obtained ahead of changes to the planning framework that could have restricted the possibility of residential development. This secured a more attractive use for the property and created a strong basis for significantly increasing both its investment potential and its value.