Readers of this blog surely remember when, just before the crisis hit, the property talk in Warsaw was all about how many, and how tall, new office, hotel, and residential towers were going to be. Two years later, not one of them got off the drawing board, really, and the focus has shifted to timing new construction right in order to catch new demand as the market returns. A pair of developers now seem to be betting the high rise days are back.
Yesterday, Echo Investment entered into a preliminary agreement to purchase a centrally located Warsaw plot at the junction of Jana Pawła II and Grzybowska streets, where the Mercure hotel currently stands. The transaction volume was €31m. Echo is going to build a 155-meter tall office tower with 45,000 sqm GLA office space on the plot, currently owned by Accor.
The other high-rise story involves the return of state-owned property management company Dipservice of its pre-crisis plans (on which we reported here). The company wants to go ahead with plans to tear down its current seat in obsolete building on Świętokrzyska Street, directly opposite the Rondo 1 office tower, in order to build a 30,000 sqm office complex consisting of two buildings of 16 and 37 storeys, plus a hotel and conference center. ”
“We cannot offer high standards here, and therefore we’re losing out on the rents we could possibly charge in a modern building in such a location,” Dispervice told CIJ when we first spoke to them about their plans in 2007.