Building a market
As the Warsaw residential market tightens and becomes gradually saturated, developers are turning to locations outside the capital for business. In a recent bold move, Warsaw-based construction company JW Construction announced its plans to construct residential developments in Łódź, Kraków and the Gdańsk area. One of the most successful residential developers in the country, JW Construction delivered 93,000 square metres of multifamily developments to the Warsaw market last year.
So far, the company has completed the construction of 12,000 apartments and 300 family houses in Warsaw and its environs alone. According to the company's information, it holds a 20% stake of the Warsaw residential development market and sold €87 million worth of residences with a profit of €5 million in the first nine months of 2002.
The first phase of the new Łódź development, scheduled to start this year, will entail the construction of 300 medium-priced apartments, and over the following 18 months the construction of an additional 700 apartments. JW Construction has already acquired the necessary land on ul. Tymienieckiego near the city centre and has also obtained the necessary construction permits from the city authorities.
JW Construction representatives claim the company has been planning the move onto new markets for some time now and say that the construction of the projects in Kraków and Gdańsk is set to begin this year as well. The new developments will be in line with the company's "medium-range" pricing policy that it had followed on the Warsaw market.
Maciej Gnoiński, president of WW Project, JW Construction's project office, refused to comment on whether the new developments would be financed by the profits from the company's share issue. Recently, the company announced it is planning to issue €21.7 million worth of shares and convertible bonds at the end of the third quarter and that it is planning to allocate its shares to CeTO, a regulated unlisted securities market. Before the planned entry to the WSE, the developer is planning to issue five million shares to be sold to the present owners of the company. But JW Construction said its new projects in Łódź, Kraków and the Gdańsk area would be financed from its own financial resources, loans and up-front payments from the future residents.
JW Construction's major project for the capital is the €1 million revitalisation plan for Warsaw's industrial area of Żerań, that envisages the area turned into "Warsaw's Venice" with various mixed-use developments. The Port Żerań project is expected to be completed before 2004.
So far, the company has completed the construction of 12,000 apartments and 300 family houses in Warsaw and its environs alone. According to the company's information, it holds a 20% stake of the Warsaw residential development market and sold €87 million worth of residences with a profit of €5 million in the first nine months of 2002.
The first phase of the new Łódź development, scheduled to start this year, will entail the construction of 300 medium-priced apartments, and over the following 18 months the construction of an additional 700 apartments. JW Construction has already acquired the necessary land on ul. Tymienieckiego near the city centre and has also obtained the necessary construction permits from the city authorities.
JW Construction representatives claim the company has been planning the move onto new markets for some time now and say that the construction of the projects in Kraków and Gdańsk is set to begin this year as well. The new developments will be in line with the company's "medium-range" pricing policy that it had followed on the Warsaw market.
Maciej Gnoiński, president of WW Project, JW Construction's project office, refused to comment on whether the new developments would be financed by the profits from the company's share issue. Recently, the company announced it is planning to issue €21.7 million worth of shares and convertible bonds at the end of the third quarter and that it is planning to allocate its shares to CeTO, a regulated unlisted securities market. Before the planned entry to the WSE, the developer is planning to issue five million shares to be sold to the present owners of the company. But JW Construction said its new projects in Łódź, Kraków and the Gdańsk area would be financed from its own financial resources, loans and up-front payments from the future residents.
JW Construction's major project for the capital is the €1 million revitalisation plan for Warsaw's industrial area of Żerań, that envisages the area turned into "Warsaw's Venice" with various mixed-use developments. The Port Żerań project is expected to be completed before 2004.
