On March 8, 2021, CEE Legal Matters reported that Bendza Barszcz had advised Zlota 44 on the sale of a package of apartments in the Zlota 44 residential tower in Warsaw. CEEIHM spoke with Katarzyna Goryszewska, Sales Director at Zlota 44, to learn more about the deal.
CEEIHM: Could you tell our readers a bit more about Zlota 44?
Katarzyna: Zlota 44 is an iconic residential apartment building that has been indelibly inscribed onto the Warsaw skyline. It redefines the word "luxury," offering spectacular views and world-class amenities. Zlota 44, a 52-story building with 287 apartments and penthouses, is the work of celebrated architect Daniel Libeskind, who also designed the Dancing Towers in Seoul and the Crystals At CityCenter in Las Vegas. Zlota 44’s investors are Amstar and BBI Development S.A.
CEEIHM: What makes the Zlota 44 tower attractive to buyers?
Katarzyna: Zlota 44 is located in the heart of Warsaw, very close to the Palace of Culture and Science, and provides easy access to Chopin International Airport, an airport for private planes, as well as Warsaw’s Central Station. A range of prestigious hotels, restaurants, shops, and boutiques can be found nearby, with world-famous heritage sites and centers for art and culture all within walking distance, including the National Opera, the Zacheta Art Gallery, the National Philharmonic, and the National Museum.
Zlota 44 residents have access to sports, recreation, and business floors, which feature facilities unique in Europe. The common area is 1,800 square meters, with a 400-square-meter terrace with a year-round jacuzzi. The recreational space includes an impressive 25-meter long swimming pool, a dry sauna, a steam bath, massage rooms, a fully equipped gym, a cinema room with a golf simulator, and a business area with a VIP lounge and conference rooms. There is also a playroom for children. There is 24/7 security and concierge.
According to experts and investors, luxury apartments are assets that might grow in value in the coming years. According to JLL, the value of luxury real estate has grown on average by 6.2% per annum in recent years, and sometimes this increase has even exceeded 10% in a single year. JLL is a company specializing in multi-faceted analyses of the real estate market. They analyzed the prices of luxury apartments in Warsaw based on the Case-Shiller index methodology. Changes in the value of apartments were determined by comparing transaction prices achieved by selected premises on the secondary market with the purchase price of an apartment on the primary market commencing in 2009. According to JLL's data, apartments at Zlota 44 accounted for as much as 75% of all transactions in the luxury real estate segment on Warsaw’s primary market in the third quarter of 2020, the year when the pandemic started.
CEEIHM: What is next on the horizon for Zlota 44?
Katarzyna: The average area of all apartments sold at Zlota 44 in 2020 was approximately 150 square meters. In 2020, interest in large apartments increased and in 2021 this trend is getting even more popular.
Large apartments are still available on the upper floors, including two penthouses at the top of Zlota 44. There are only 10% apartments available for sale in the offer of Zlota 44 at the moment.
CEEIHM: What were some of the complexities of the deal and how did Bendza Barszcz handle them?
Katarzyna: This transaction was difficult mainly due to the nature of the entire investment, the buyer, and many factors that occurred simultaneously and required coordination. For instance, the sale of other apartments to individual buyers, conversions of the perpetual usufruct into the full ownership right as well as disturbances caused by the COVID-19 crisis. The Bendza Barszcz team was responsible for negotiations and drafting of all legal documentation – they put great attention to details and guided us through the whole process.
CEEIHM: What made you choose Bendza Barszcz as your legal advisor?
Katarzyna: We have a very long history of fruitful cooperation with both Grzegorz Barszcz and Igor Bendza. Bendza Barszcz team’s main advantage is that they bring to the table modern and bold business-oriented legal solutions, drawn from big M&A transactions. The Bendza Barszcz team is fully involved in projects in which they advise – both Grzegorz Barszcz and Igor Bendza, as Partners, are always available and do not try to be in several transactions at the same time. Due to their attitude, hands-on mentality, deep legal knowledge, and good business understanding we rate Grzegorz Barszcz and Igor Bendza high among international law firm partners operating in Warsaw. Grzegorz Barszcz and Igor Bendza add substantial value which is crucial for the most complex M&A and real estate transactions.
Originally reported by CEE In-House Matters.