CMS lawyers are providing advice in relation to an investment project regarding a private dormitory developed by Alkyon Partners in Kraków. The scope of works assigned to CMS' Real Estate and Construction Team includes legal advisory services at a transaction closed in April, consisting in the acquisition of an undeveloped property in Kraków to be allocated for the construction of a modern dormitory. Furthermore, CMS lawyers are providing advice throughout the entire investment process.
The private dormitory is to be located in the district of Podgórze in Kraków and will be made up of 1072 furnished rooms, with fully-equipped kitchens and bathrooms. The building will have wi-fi internet access and is to accommodate a coffee bar, a fitness room, a bicycle parking room and a laundry room.
“It is one of the first projects of its type in Poland. Currently there are altogether 20 such developments operating on six markets in our region, whereas eight further developments are under construction” - emphasises Lidia Dziurzyńska-Leipert, partner in CMS’s Real Estate and Construction Department who manages the team of lawyers advising on this project. “In connection with a low supply of places in dormitories and at the same time high demand for rooms in modern dormitories, one should expect investors’ increased interest in that sector of the real property market.
Profits earned on private student housing are at the level of 6% in major academic centres in Europe and 7% in regional centres. Importantly, business cycles do not apply to that sector, which is a significant factor for investors considering the current economic forecast” - she adds.
The team of CMS lawyers who advised on this project and other projects related to the construction of student housing, apart from Lidia Dziurzyńska-Leipert, is composed of Michał Bork, counsel and legal counsel, Wojciech Konwisarz, advocate, Aleksander Grabecki, advocate, and Barbara Krupińska, legal counsel, of the Warsaw Real Estate and Construction Department.