We manage investments

About us

Onyx Asset Management is a Polish company offering comprehensive real estate asset management services as well as supporting institutional investors in managing the debt financing of their selected investments.

The core of the Onyx Team has worked together for over 20 years on a variety of investment projects, ranging from corporate turnarounds, acquisitions and sales, to real estate development and property portfolio management.

During the last 12 years, we developed significant experience in real estate covering the retail, office and residential sectors. The key members of the team have been working with Elliott Associates, a US investment fund, on numerous real estate and corporate projects since the 1990’s.

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120,000+ m2 of developed retail and residential space

140,000+ m2 under management of office and retail space in Octava Property Trust portfolio

400 mln euro closed debt financing/refinancing transactions

Our
portfolio

Octava Property Trust is a portfolio of almost 20 office and retail assets, with the total GAV of cir. € 250m and annual rental income of almost €20m. The portfolio’s GLA is ca. 200k square meters.

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Octava Property Trust (OPT)

Financing of the Quorum C residential project

Financing of the GOP residential Project

Financing of the Quorum B residential Project

A residential project on the site of the former Galeria Malta Shopping Center in Poznań

Octava S.A. (Octava)

Investment approach

Fundamental real estate investing We invest based on a rigorous fundamental, bottom-up analysis of the target asset. Our modelling assumptions are detailed and conservative. With the thorough knowledge of the technical and commercial aspects of property management, we can make realistic estimates of cash flows and capital outlays.

Value Investing We look for undervalued assets, preferably in complex legal and financial situations, in asset or share transactions. We strive to unlock value and seek hidden premiums through repositioning, redevelopment and re-leasing programs, implemented by our team.

Hands-on Investing Our asset and property management teams often, but not exclusively, work with outside service providers. However, in the areas of property management, facility management and capex/fit-out projects our team members act as hands-on managers. We believe in close monitoring of all investment outlays and expenditures.

SERVICES

Our team covers all aspects of the investment and divestment process

Projections and financial modelling

Our management of investment is based on detailed IRR models. We strive to be realistic and cautious when it comes to repositioning and capital expenditure budgets, as well as letting assumptions.

In-house and outsourced commercial, legal and technical due diligence

Our team is deeply engaged in all aspects of the due-diligence and pre-transaction processes.

Negotiations of acquisitions, sales and financing

We have extensive experience in conducting complex acquisitions, sales and financing negotiations. We strive to optimise the use of external advisors, but never delegate the responsibility for addressing key risk and value drivers.

Transaction settlement and full implementation

Our in-house team together with long-term external advisors provide a reliable and cost-optimised back-office service for the transaction and post-transaction periods.

In-house and outsourced

The in-house leasing team is responsible for managing relations with outside agents and hands-on negotiations of the lease agreements, including coordinating fit-outs with the technical team. The team has been leasing about 20 000 m2 of space annually since 2014.

We manage buildings, SPVs and portfolios

Building services (in-house or outsourced)

When it comes to property management, we focus on flexibility and cost-optimisation. Some of our properties are managed (under close supervision) by external property managers. Others are under our direct property management team, contracted out on a cost-plus basis.

Rent-rolls, invoicing and service charge management

Our in-house property management team oversees the maintenance of current rent-rolls and is responsible for the preparation and implementation of the annual service charge budgets. We use a multi-layered review process for overseeing all material building maintenance expenditures.

Full Capex and fit-out coordination

Our in-house technical team is responsible for annual capex budgeting and oversight or project management of specific capital investment projects implemented in the portfolios. It is also responsible for driving the on-going fit-out programmes and ensuring that the costs are kept under control.

Accounting and financial reporting (in-house and outsourced)

Group accounting and tax planning for the managed portfolio are outsourced and verified by the in-house team. Consolidated financial accounts as well as bank reporting are performed in-house.

Portfolio corporate services

Our in-house team ensures full implementation of corporate and compliance services required to maintain the investment portfolios we manage.

We implement the process from sourcing to completion, for new and existing developments as well as redevelopments

Concept design and preliminary budgeting

Our team prepares the business case and the main project assumptions, in terms of leasable area and expected rental levels. Subsequently, we oversee the preliminary concept design and construction costing (with our technical team or external contractors)

Commercial analysis and confirmation of financing availability

Following the preliminary design and costing, we develop a bottom-up financial model, inclusive of all commercial assumptions and IRR calculations. We then confirm investment interest from equity and debt funders

Full design and detailed development modeling

Subject to investors’ interest, we develop a detailed design and cost budget and undertake a value-engineering process to optimize capital outlays. We develop a pre-leasing plan and conduct preliminary discussions with the general contractors. Subsequently, we develop a detailed investment model, inclusive of key project milestones.

Project implementation

Our team is responsible for full project coordination, including financing, pre-letting, GC-contracting right through to obtaining the occupancy permit.

Our Team acts as an advisor in structuring funding sources, as well as an agent monitoring these sources in the process of their use and repayment.

Case
Studies

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Magnolia Park Shopping Center

Magnolia Park Shopping Center – Wroclaw

Magnolia Park Shopping Center is a Wroclaw-based prime property originally developed by Octava S.A. on the 24ha site of a former meat production company.

The team implemented a liquidation and demolition of a former meat plant. It oversaw a pre-let of over 65% of the planned GLA and secured full development financing to build a ca. 76k square meter shopping mall. The project opened in autumn, 2007.

The team managed Octava’s sale of the project to Blackstone Group at a valuation of ca. 223m EUR.

Renaissance Tower Office Building

Renaissance Tower Office Building – Warsaw

Acquired in mid-2017 by the Onyx team, on behalf of Octava Property Trust.

Renaissance Tower is a ca. 18.7k square meter GLA office building centrally located in Warsaw’s Wola district.

This over-leveraged, 50% vacant property was acquired for a low price, in agreement with the bank to conditionally write-off a portion of the debt.

Onyx carried-out the re-commercialisation and refurbishment of the property which is on track of achieving a 100% occupancy by the end of 2019.

Okęcie Park Shopping Center

Okęcie Park Shopping Center – Warsaw

Acquired by Onyx in mid-2017, on behalf of Octava Property Trust

Okęcie Park (formerly Centrum Krakowska 61) is a ca. 80k GLA house furnishings retail park with Auchan hypermarket and office complex located near the Okęcie airport in Warsaw.

Upon its acquisition by OPT in 2017, the property suffered from years of underinvestment, a low WAULT and a ca. 10k square meter GLA (over 12%) structural vacancy of over 4 years.

Onyx undertook an aggressive recommercialisation and refurbishment programme comprising capital investments of ca. EUR 10 million . As at August 2019, the property had a WAULT of 9 years and was 100% occupied.

Residential

In partnership with an external team, Onyx partners have developed a number of residential projects in the city of Lublin.

Over the course of 8 years, this partnership successfully and profitably constructed and sold 630 apartments (37k sqm) of residential space in different market segments. The development budget totaled ca. €35m.

TEAM