The court has ruled that HREIT, a key company in the HRE Investments group owned by Michał Sapota, will enter bankruptcy proceedings. This decision, reported by local outlets, signals significant challenges for the company’s thousands of creditors, as restructuring options are now off the table.
HREIT has been in the spotlight for approximately two years. The developer, managed by Sapota, aimed to construct residential properties across various Polish cities. However, its operational model, which heavily relied on borrowing funds from investors with promises of returns, has proven unsuccessful. In 2024, the company filed for restructuring, but this latest court decision confirms that such efforts will not proceed. Reports indicate that HREIT’s debts have reached 2.8 billion PLN, with future creditor satisfaction now resting in the hands of the appointed receiver.
Serious Allegations Against HREIT’s President
The court has appointed Grenda-Restrukturyzacja as the receiver for HREIT. The bankruptcy ruling is a setback for investors awaiting refunds. In April, some investors had submitted a petition for rehabilitation, arguing in their letter that “rehabilitation proceedings offer a broader range of mechanisms for achieving the highest possible level of creditor satisfaction than bankruptcy proceedings,” as reported by Gazeta Wyborcza.
In September 2025, HREIT’s founder Michał Sapota was arrested for three months, with his detention subsequently extended. He faces allegations of causing damages ranging between 2 to 3 billion PLN and affecting over 8,300 individuals. According to Gazeta Wyborcza, charges against Sapota and several others linked to HREIT include “causing no less than 1,736 individuals to part with their assets of considerable value totaling no less than 362 million PLN and 1.1 million euros, 105,000 Swiss francs, and 948,000 dollars, as well as leading over 1,500 customers to unfavorable asset disposition worth at least 243 million PLN.” The case remains ongoing.
