Cavare by Cavatina and the NSF VI fund, managed by Urban Partners, are developing the Lett platform’s portfolio in Gdańsk. The parties have signed another forward funding agreement covering Cavare’s development of the Palio D1 project, which, upon completion, will operate under the name Lett Stocznia. This phase of the investment will include 310 units, and upon its completion, the Lett platform’s portfolio in the Palio complex will grow to 646 units.
The Palio D1 project is located on Jana z Kolna Street in Gdańsk. It is the second building in the Palio complex—after Palio C—on the site of the former Gdańsk Shipyard, and will be one of the largest institutional rental projects of its kind jointly developed by a developer and a fund in the Tri-City.
A partnership that’s growing alongside Gdańsk
The two companies began their collaboration on the Palio complex in February of this year, with the announcement of a forward-funding transaction for the Palio C project, comprising 336 units. The signing of the agreement for Palio D1 marks the next stage in the joint development of the complex and expands Lett’s portfolio in this location to 646 units.
For us, the sale of Palio D1 is, above all, another step in building a repeatable business model and confirmation that forward funding can serve as the foundation for long-term, scalable cooperation with an institutional partner. Following Palio C, we are consistently developing the next phase of the Palio complex with Urban Partners, increasing the total scale of the project to 646 units. “This demonstrates both the attractiveness of Gdańsk as an institutional rental market and Cavare’s ability to develop and execute large-scale projects that meet the requirements of international capital,” says Bartłomiej Wentlandt, CEO of Cavare S.A.
The new agreement—for Palio D1—covers a building that will feature 310 fully furnished units and 98 parking spaces, both underground and above ground. The property’s layout consists primarily of studios and one-bedroom units, tailored to the needs of professionally mobile individuals. Like Palio C, the building will operate under the Lett brand—Urban Partners’ institutional rental platform. The total residential area will be nearly 10,000 square meters, and the commercial area will be approximately 390 square meters. Construction is expected to take 27 months from the finalization of the sale.
In a forward-funding arrangement, it is crucial to structure the terms of the transaction so that the financing, schedule, and construction standards form a coherent framework for the entire investment process. “In the case of Palio D1, we have developed a structure that provides both parties with transparent terms of cooperation and a solid foundation for the efficient execution of the project in the coming years,” adds Łukasz Morgaś, Head of Legal & Operations (COO) at Cavare by Cavatina.
PRS, alongside logistics, remains one of the two areas in which we are most eager to allocate capital in Poland today. We see it as an attractive investment opportunity—a segment that addresses the real need of a growing group of people who want to live in the city without long-term commitments, while at the same time facing limited supply that cannot keep up with the demand for a professionally managed product. — explains Maciej Piotrowicz, Head of Real Estate Poland at Urban Partners.
Maciej Piotrowicz
© Urban Partners
A Location with Potential: Rent, Work, and Life All in One Place
The project is located in the Młode Miasto district—within the revitalized post-shipyard areas of Gdańsk (ultimately covering over 150 ha)—right next to Jana z Kolna Street. It is one of the few locations in the Tri-City where the private rental sector (PRS) is being developed in the immediate vicinity of an office complex by the same developer. The Palio A and B office buildings are already fully leased—tenants include Fortum, Orange, and the Regional Labor Inspectorate—and additional buildings of this type are under construction.
The location offers convenient access to the Gdańsk Stocznia SKM station, the Brama Oliwska tram stop, and bike paths along Jana z Kolna Street. From here, one can walk to the Main Town and the European Solidarity Center. Nearby is also “100cznia”—one of Gdańsk’s most recognizable dining and cultural venues—which further enhances the appeal of this location for young tenants.
Gdańsk remains one of our priority markets in Poland. Palio D1 adds a location with exceptional appeal to our PRS portfolio—at the intersection of business, cultural, and residential districts, with direct access to public transportation and workplaces. This is exactly the type of asset we want to invest in for the long term. —summarizes Magdalena Terefenko, Vice President, Urban Partners Poland.
Magdalena Terefenko
© Urban Partners
This configuration—housing within walking distance of workplaces, public transportation, and cultural offerings—directly addresses the needs of the PRS’s primary target group: young professionals, business services sector employees, specialists relocating to the Tri-City, and students, for whom commute time and lease flexibility are the top priorities.
The Tri-City on the Map of PRS Market Development in Poland
Demand for institutionally managed rental apartments in Poland significantly exceeds supply. The Tri-City—with a projected market share of approximately 26% by the end of 2027—is identified, alongside Wrocław, as one of the regions with the greatest growth potential. Gdańsk, Gdynia, and Sopot are increasingly stepping out of the shadow of Warsaw, Kraków, and Wrocław as top-choice locations for PRS operators.
Why Gdańsk Attracts Institutional Renters
Demand for professionally managed residential properties in the Tri-City is driven primarily by the labor market and professional mobility. There are several hundred business service centers operating in Pomerania, employing a total of over 42,000 people, and on top of that, there is a growing number of students and professionals relocating to the city.
The Tri-City’s unique character as a port and tourist city also plays a role: during the summer season, some units on the private rental market are rented to visitors, which limits the available supply. In this context, the fixed, predictable fee offered by PRS operators becomes a viable alternative—both for contract workers and those being relocated, who need housing “immediately,” and for people reluctant to commit to a long-term lease. It also appeals to students who book apartments in advance. Thanks to its location near workplaces and a transportation hub, Lett Stocznia aligns with this trend in the market’s development.
Transaction Advisors
In the transaction involving Palio D1, Cavare was advised by CBRE and the law firm Pinsent Masons (Bartek Kordeczka, Agata Koczorowska, and Martyna Kamińska), while Urban Partners was supported by CMS Cameron McKenna (Agata Jurek-Zbrojska, Anna Wiśniewska, and Aleksandra Rudnicka), MDDP, and Savills.
For more information: www.cavare.pl
