S4, Warsaw

Reasons to invest in the project S4, Warsaw:

• Attractive Returns: 9.75 – 11% p.a., paid monthly;
• Fixed Capital Gains: 1.5% p.a., paid at maturity;
• Loan-to-Value (LTV) Ratio: 30%, with a collateral value of EUR 8,391,571;
• Revenue-generating asset: each month the property generates more than EUR 10,929 of revenue;
• Investment Security: a first-rank mortgage on the project assets and 6 months of prepaid interest, which will ensure interest payments while the rental income reaches its planned levels;
• The project owner bears the currency exchange risk, as all transactions with investors will be carried out in EUR. This risk is further mitigated through a conservative LTV.

The InRento team presents a new investment opportunity – S4, Warsaw, an office conversion and renovation project in one of Warsaw's most prestigious districts. 

The project comprises commercial premises with a total area of 3,598.62 sq. m, spread across the ground floor, first floor and mezzanine level, as well as the basement levels, which accommodate a gym and ancillary rooms. More than 15 years ago, the building was designed with a focus on the luxury segment. However, it now requires refurbishment. The functional layout allows for the efficient use of the existing space, the creation of additional separate leasable units, and the adaptation of the premises to meet modern market needs.

The project aims to increase the property's market value and rental income through acquisition and renovation, with a planned exit strategy involving the sale of the refurbished premises as separate office units.

The property currently generates nearly EUR 11,000 in monthly rental income. The majority of this income (83%) is obtained through a long-term lease agreement with a fitness club, ensuring that rental income will continue to be generated throughout the refurbishment period. The project owner expects to achieve optimal occupancy in Q1 2027. Potential tenants have already been identified for the vacant and newly created premises, and rental income is therefore expected to increase once the refurbishment works are completed.

Additionally, to ensure uninterrupted interest payments to investors, a 6 month interest reserve has been agreed with the project owner. This reserve will be used to cover interest payments until the property reaches the targeted level of rental income.

Project owner – MW Property Management Sp. z o.o., represented by Michal Wojtas, an experienced real estate professional who focuses on acquiring undervalued properties and unlocking their potential through renovation, repositioning and active management. Alongside his property activities, he co-owns and manages Palac Czosnowskich, a historic palace venue that hosts weddings, corporate and cultural events.

The project is secured by a first-rank mortgage on the project assets, with a conservative loan-to-value (LTV) ratio of 30%. The project offers investors a fixed monthly interest rate of 9.75 – 11% p.a., along with fixed capital gains of 1.5% p.a., paid at maturity. This results in a total gross profitability ranging from 11.25% to 12.5% p.a.

The maximum duration of the project is 30 months.