CASE 3

Residential Development Investment
Warsaw (Białołęka)

The project involves the development of a low-rise residential complex in the Białołęka district (Warsaw), one of the city’s active residential expansion areas with stable demand for home purchases.

The investment is focused on creating a liquid residential product with controlled construction economics and a clear exit model through sales to end buyers.

Investment Strategy Logic

The project represents a structured investment in residential real estate development in Warsaw with clear value creation economics and a transparent exit model.

Investment value is generated through:

* acquisition and development of land located in one of Warsaw’s active residential expansion areas,
* construction of a liquid, mass-market residential product with controlled cost structure,
* sale of completed residential units to end buyers at market prices,
* capitalization of the spread between construction cost and sales price.

This model enables direct profit generation within a full development cycle while ensuring capital protection through a tangible real asset.

Asset Concept After Project Implementation

Total residential saleable area (PUM): ~2,260 m²

Project format:
— 7 residential duplex units
— 1 single-family house

Land plot area: ~0.78 ha

The project delivers a completed residential product designed for end buyers, with an optimal balance between construction cost and market sales value.

The mass-market residential format supports efficient absorption and reduces market risk exposure.

Role of Location

Białołęka is one of Warsaw’s key residential expansion districts and is characterized by:

* stable demand for individual residential housing,
* ongoing residential infrastructure development,
* convenient access to the city center (~30 minutes),
* relatively lower land acquisition costs with strong long-term price appreciation potential.

The low-rise residential format aligns with current demand for functional and affordable family housing, ensuring strong liquidity of the final product.

Key Investment Metrics

Total construction budget: ~PLN 13.25 million
Projected gross revenue: ~PLN 27.12 million
Expected total project profit: ~PLN 12.31 million
Investor profit: ~PLN 11.08 million
Project profit margin: ~45%
The project demonstrates strong development economics with substantial capital appreciation potential within a single investment cycle.

Investment Entry

Land acquisition and project structuring:
included in project structure

Total construction CAPEX:
~13,250,000 PLN

Total investment volume:
~13,250,000 PLN

Tangible asset backing:
Residential land plot ~0.78 ha in Warsaw

Rental Income

Saleable residential area (PUM):
~2,260 m²

Average selling price:
~12,000 PLN / m²

Projected gross revenue:
~27,120,000 PLN

Residential format:
7 duplex units and 1 single-family house

Capital Growth and Exit

Development profit generated through:
Spread between construction cost and sales price

Expected total project profit:
~12,310,000 PLN

Investor profit allocation:
~11,080,000 PLN

Exit model:
Sale of completed residential units to end buyers

Exit structure:
Full capital return upon unit sales completion

Investment Math

Total investment:
~13,250,000 PLN

Projected gross revenue:
~27,120,000 PLN

Expected net project profit:
~12,310,000 PLN

Investor profit:
~11,080,000 PLN

Project profit margin:
~45%

Capital multiple (MOIC):
~1.9×

Key Considerations

The project calculation:

* is based on actual residential development parameters in Warsaw (Białołęka district),
* uses current market pricing for mass-market residential units,
* incorporates realistic construction costs at approximately 4,500 PLN / m²,
* does not assume speculative price growth and is based on current market conditions,
* reflects profit generation within a single completed development cycle.

The model represents a structured real estate development investment with transparent economics and a clear profit generation mechanism through the creation and sale of residential units.

Strategy Applicability

This strategy is applicable to residential development projects in expanding districts of major EU cities with stable demand for housing purchases.

Key project selection criteria include:

* location within an active residential growth area of Warsaw,
* strong and liquid demand for low-rise and individual housing formats,
* ability to execute the project with controlled construction costs,
* predictable exit model through sales to end buyers,
* capital protection through investment in a tangible asset — land and residential real estate.

The project is focused on delivering a liquid residential product with a high probability of successful market absorption.

Investment Request

The process starts with an investment request. It allows us to assess the feasibility of cooperation, define the working format, and outline potential investment scenarios. This approach is designed for investors who view Polish real estate as an investment asset and are ready to operate within a structured strategy and financial modeling framework

Contact us to schedule an initial online meeting

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