CeMat launches development investment in a residential building with ground floor retail
24 Agosto 2023 - 6:39AM
CeMat launches development investment in a residential building
with ground floor retail
Following pre-development activities, CeMat made
the decision to commence the company’s first residential building
project – the “Moje Bielany” development. The project is located in
the Bielany district of Warsaw (Poland). The project includes 105
apartments along with ground floor retail space. The total area of
the apartments is 5,727 sq.m. and the retail space is 1,290 sq.m.
The residential building has been designed to include an
underground garage with 124 parking spaces. The total sales value
of apartments and retail space is expected to be to be at the level
of DKK 150 million. According to the contract with the general
contractor, construction work on the residential project is
scheduled to be completed in the second quarter of 2025.
The decision was based on:
- strong demand on the local housing market
deriving from several factors, among others a national preferential
mortgage programme for first time buyers. This translates into high
customer interest in the purchase of apartments in the project,
resulting in CeMat concluding as of today 23 preliminary sales
agreements, covering over 19% of the sales area for apartments. The
company has also concluded 18 reservation agreements covering 15%
of the residential sales area;
- promising negotiations underway with potential
buyers of retail premises on the ground floor of the building;
- CeMat’s successful negotiations with the
banks, leading to a banking decision in July 2023 and a signed
agreement with the bank for financing the investment. The loan
obtained, together with the company’s own funds already committed,
means the development project is fully financed. The bank's minimum
requirement, as indicated in the loan agreement, is 25% pre-sale of
apartments in the project. Considering the current pace of
apartment sales, CeMat expects to meet this requirement in the next
two to three weeks;
- CeMat signing a fixed-price contract with the
general contractor, thereby reducing the company’s risk in the
event of changes on the construction contractor market;
- the development budget, which ensures a solid profit from the
development project. The development budget takes into account the
market value of the land.
This significant milestone represents an
important step forward in the company’s long-term strategy, as
presented in the value creation chain of transforming land in the
Bielany district into development sites.
More information on the project can be found at
www.mojebielany.com
The project is not expected to have the effect
on the financial results in 2023. The impact of the Moje Bielany
project on the company’s results will occur in 2025.
The consolidated EBITDA for the CeMat Group is
expected to be DKK 4-5 million in 2023. A positive net result after
tax is expected at the level of DKK 2.5 to 3 million, before taking
into account the valuation of the investment property for 2023
which is in line with earlier expectations.
Cemat A/S
Jaroslaw LipinskiCEO
This announcement has been prepared in a Danish-language and an
English-language
version. In case of doubt, the Danish version
prevails.
- Announcement no. 8 - 24.08.2023 - CeMat launches development
investment in a residential building with ground floor retail
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