From trucks to houses

"We are witnessing dynamic development in the real estate and construction industry and that is why this sector seems more attractive than the one we have been operating in so far," said Cezary Nowosad, an adviser to the 7bulls.com management board.

The company plans to sell its automotive arm, which is operated by Uni-Truck, by mid-2007.

7bulls plans to build on land it already owns as well as buying new land for development. To enter the real-estate industry the company bought Warsaw-based property development company Triton Development for zł.1.5 million. The transaction will be finalized when Triton receives a capita injection of zł.60 million. The firm will also change its name to Triton Development SA and issue shares worth zł.100 million.

The company's first investment will be a residential development called Triton Park, which will include 549 luxury apartments located on ul. Grójecka in Warsaw. Warbud will be the main contractor and the apartment buildings will be designed by Spychała and Partners architectural studio. The completion date for Triton Park is August 2008. Construction works will begin in January 2007.

Tomasz Zganiacz, the CEO of 7bulls.com, said that the prices of new apartments in Triton Park will be higher than the Warsaw average, and will exceed zł.7,000 per sqm.

The company predicts that its first real-estate investment will bring zł.113 million in gross profit and the profits from selling its service-retail section of the ul. Grójecka development will earn it zł.372 million. It has been confirmed that Alma, a company that owns several supermarkets in Poland, has already purchased 1,500 sqm of its retail space.