Pirelli Real Estate has exercised an option to buy the first phase of a large development project in Warsaw, Poland.
The Italian property company, which manages listed and unlisted fund vehicles, said it first acquired an option to buy the site in 2006 and has now completed the purchase from the Lucchini family.
Pirelli is taking a 34 percent stake, while private equity real estate firm Grove International Partners is taking 51 percent and the Lucchini family 15 percent.
Grove and Pirelli are already progressing seven projects together in Poland that will deliver 4,200 apartments. In this latest project, the plans center on 720,000 square meters of land about 6 kilometers from Warsaw’s old town. Pirelli has also signed agreements to extend the project over the next two years, subject to certain conditions, bringing the project’s potential buildable area to a total of more than two million square meters .