Tuesday, 10 March 2026
Polish residential developer HREIT has stated that the recent detention of its sales director will not affect the company’s ongoing attempts to reorganise several development projects and stabilise its financial situation. The company said the restructuring processes involving various project companies remain in place and continue to be viewed as the most realistic way to address outstanding obligations to creditors.
The arrest forms part of a broader investigation into the activities of companies linked to the HRE group and its founder, Michał Sapota, who has been in custody since 2025 while prosecutors examine alleged irregularities related to residential development projects. Authorities are investigating whether investors and apartment buyers may have been misled in connection with projects that were launched in several Polish cities.
Lawyers representing Sapota and the detained sales executive argue that the arrest lacks sufficient legal justification and have indicated they will challenge the court’s decision. According to the defence, the executive has cooperated with investigators and has not attempted to avoid the proceedings. They also criticised the public disclosure of her personal relationship with Sapota, describing it as an unnecessary intrusion into private matters.
The legal team further suggested that the timing of the detention may be connected to disputes surrounding the management of certain development projects and ongoing legal proceedings involving the company.
Meanwhile, commercial courts in Poland have authorised restructuring procedures for several companies responsible for individual HRE development projects. These proceedings apply to selected residential investments and are intended to assess whether the projects can continue under revised financial conditions rather than being forced into liquidation.
Additional projects linked to the group have also been placed under the supervision of court-appointed administrators while their financial situation is reviewed. According to information presented in court, many creditors have expressed support for restructuring proposals, arguing that completing projects could offer a better outcome than bankruptcy.
At the same time, the company reports that construction firms have approached the courts and the HRE group with proposals to complete unfinished developments. Interest has reportedly been expressed in several projects, including residential investments in Opole, Wrocław and Świdnica.
The situation surrounding HREIT has attracted considerable attention in Poland’s residential development market because the group was involved in multiple housing projects across the country. The final outcome will depend on the progress of the criminal investigation as well as the decisions of courts overseeing the restructuring processes affecting the company’s projects.
