German developer Von der Heyden Group has launched underground construction work on its newest office project in Poland, the EUR 33m Andersia Business Centre (ABC) in Poznan. Porr Polska, the general contractor of this stage is to complete its assignment in October 2012.

Asked about the possible timeline of the entire project, Adam Trybusz, executive director at Von der Heyden, told news2biz:

"Setting a deadline without a satisfactory pre-lease ratio is unreasonable. We are not racing with anyone but the market. No market – no product, to put it bluntly."

Although at the end of 2009 office vacancy ratio in Poznan stood at 9% due to low demand, Von der Heyden is banking on an upturn.

"We would not be starting the investment had it not been for signals of improvement. We are accepting a certain risk level because we want to benefit from the timing," says Mr Trybusz.

Located in the very centre of Poznan, ABC is a joint venture between Von der Heyden Group and the City of Poznan. It constitutes the third phase of Anders Square development, the initial two stages of which: Poznan Financial Centre and Andersia Tower, were also developed by Von der Heyden Group. PFC was sold to AIB Polonia Property Fund in December 2004 and Andersia Tower was sold to DEKA Immobilien in January 2008.

ABC will be a high class, five storey above ground office complex located in front of the PFC and Andersia Tower Building near the Poznan Old Town, Stary Browar shopping centre and Poznan International Fairs. ABC will comprise 14,500 sq.m net usable area and two underground levels with 170 parking places.

The investor is paying for the underground works with its own funds and talks are underway regarding financing of the remainder of the project. Negotiations with prospective tenants are also taking place as Von der Heyden will start building above ground only once a reasonable amount of pre-leases has been secured.

In the future, Von der Heyden Group plans also the fourth and final phase to the Anders Square development - Andersia Silver. After Andersia Tower it will be the highest building in Poznan. The company has received permits to build up to 116m.

Founded in 1989, VDHG specializes in high quality property investments, including the renovation of historic buildings. The companies comprising the Von der Heyden Group together have completed an investment program in real estate valued at well over EUR 275m. Its current investments (under development and/or acquisition) are worth approximately EUR 125m which will bring the total investment volume to EUR 400m by the end of 2011.

As far as their other Polish projects are concerned, Von der Heyden is working on a boutique hotel development in Gdansk (see no 353 page 9) and continues restoration of historic tenement houses on Wilcza street in Warsaw. Its pipeline includes a 5,200 sq.m office project on Nowy Swiat street in Warsaw. According to company representatives, they are seeking other investment opportunities in Warsaw, Poznan, Wrocvlaw, Gdansk, and Krakow.