Archicom to acquire majority stake in mLocum, expand to new markets

Warsaw Stock Exchange-listed Archicom, one of the largest residential developers in Wrocław, has signed a preliminary agreement for the purchase of 80 percent of shares in mLocum, a residential developer present in Warsaw, Kraków, Wrocław, Tri-city, Poznań and Łódź. The transaction is valued at PLN 87.6 million and is expected to be finalized in two phases, in Q3 2017 (51 percent of the shares, after the required regulatory approval has been granted by Poland’s competition watchdog UOKiK) and by the end of next year (a further 29 percent). The acquisition of a majority stake in mLocum is meant to allow Archicom to step up its development activity and to grow in new large residential markets across Poland. As of the end of April, Archicom and mLocum had over 1,400 apartments in 13 projects and over 500 apartments in five projects on offer respectively.