24 June 2017

Share this article

Development of investment portfolio – interview with Maciej Straszkiewicz

Development of investment portfolio by commercial areas is a brand new thing for most individual investors. Metropolitan Investment S.A. is the first company in Poland to create solutions which have so far been available only to the largest funds and foreign companies and to adapt them to the needs of the individual client. The topic of vistas for investment in profitable real property is touched on by Maciej Straszkiewicz – Senior Wealth Manager at Metropolitan Investment S.A.

What are the possibilities in the area of investment in commercial real property?

When we talk about commercial real property, we mean first and foremost all offices, storage areas, hotels, shopping malls as well as retail parks, which are becoming more and more popular. We expand the portfolios of our clients by interests in small shopping malls. We allow it from commitment amounts of PLN 200 – 300 thousand. Increase in the commercial real property market is undoubtedly a result of low interest rates, seeking safe forms of capital allocation and possibility to generate higher profits than in the case of residential investments.

Why Metropolitan Investment implements commercial investments in smaller cities?

A satiated shopping mall market in large cities in Poland results in the fact that the concept of small trade and service facilities is growing especially intensely. Several years ago, large shopping malls were an attraction and a means to spend free time. The situations has changed. If we want to do some simple shopping after work, we do not want to go to a large shopping mall, wait in traffic jams and look for parking spots in full parking lots. We do our basic shopping more closely, more easily and faster if there is a convenient commercial park right around the corner, with a grocery store, drugstore, the chemist’s or shoe store. Cities of 15 to 50 thousand are the market with the highest potential. Building retail parks in smaller cities, we accurately close off the commercial area in a given location.

Is this an attractive form of investment?

If the investor is interested in rates of return of 8-12 % per year with maximum safety through investment in real property – then the answer is “Yes!”. Over ten years of my work in banking with the affluent client, I have gained much experience in shaping investment portfolios. Over the last several years, I cooperated with the most affluent investors from the Pomorskie Voivodship. I noticed that from their perspective, what is crucial is the diversification of the portfolio, but it has to be built on robust foundations which are based on stability, predictability and repeatability of the result. All those features are present in profitable real property offered in Metropolitan Investment. Many investors treat investments of that sort as an addition for offers put forward by financial institutions. Thanks to proper legal-fiscal optimisation, this is also a perfect solution for the client who likes to receive periodical interest on invested capital.

There are no risk-free investments, but what happens when contracts with tenants mature?

We limit that risk by becoming the manager of each of our facilities. It is us that are responsible for negotiations and a possible re-commercialisation of a given facility. For the client, having that sort of investments should not require any action on their part. As Metropolitan Investment, in facility commercialisation we rely on sure and reliable tenants operating on markets in the entire Europe. This is guaranteed by many-year tenancy contracts concluded with reliable market players. Each contract signed with tenants is based on EUR, indexed by the inflation rate; therefore, we protect ourselves against the risk of increase in interest rates and the market risk. From the point of view of the client, this is an additional form of security.

What makes individual clients choose to allocate capitals in retail parks nevertheless?

A predictable and repeatable rate of return from investment based on long-term tenancy contracts with reliable tenants. Safety arising from allocation of assets in the real property market, which assets, in case of fluctuations on financial markets, will remain the most reliable form of investment. Possibility to treat investments of that sort as an alternative to offers put forward by financial institutions. Investment in a facility of that sort allows to derive profits through payment of dividend from the company. This is a perfect solution for the client who likes to receive periodical interest on invested capital.

The Metropolitan Park in Biała Podlaska, currently under implementation, will be a set of trade and service buildings. Direct neighbourhood of a bypass and large residential estates guarantees comprehensive service through combination of several stores in one place. The tenants are such chain brands as Rossmann, Neonet, Pepco, CCC, Kik, KS Sport and Martes Sport as well as one of the food industry operators. For a potential investor, having real property of that sort in their portfolio is a unique opportunity to expand their investment portfolio by a profitable real property. A perfect knowledge of the specific nature of a given city, shopping potential and shopping habits of clients gives the opportunity to open facilities that can meet the expectations of the tenants, inhabitants and the local community.

The article was published in the Prestiż Trójmiasto magazine.

—————————————————————————————————————————————–

Maciej Straszkiewicz – Senior Wealth Manager at Metropolitan Investment S.A.

For nearly 10 years closely connected with the financial market in the private banking segment. We worked directly with affluent clients as the Wealth Manager, managing the portfolio of assets worth PLN 600 – 800 million. He gained his manager’s experience through managing his own banking team in the Private Banking segment. In Metropolitan Investment, he is responsible for maintenance of relation with the affluent client profile and for management of his own sales team.

Share this article