It takes a village
Tup Group has purchased a 122.5 ha plot of undeveloped land in the town of Siewerz, outside of Katowice, and intends to build a residential village on the site.
The property is situated in a rural area featuring wooded areas and a lake, thirty minutes outside of Katowice's city center. The terrain is unimproved and the investor will thus have to implement a full utility network for the area before any residential construction can begin.
Robert Jacek Moritz, Tup's President, sees great potential in the Siewierz property thanks to its convenient location in a natural setting. He says, "It provides respite from the city while maintaining easy access to and from Katowice. We are certain that we can create a pleasant residential setting based on the area's natural environment and the development of an integrated design for homes, complete with infrastructure and retail services."
Tup expects to finalize sales agreements with private owners of the individual plots by the end of August. The total plot, valued at an estimated E16 (zł.60) million, will be absorbed by a Tup subsidiary created purposely for the Siewerz village project. Tup will hold 80 percent of the total shares in the land, while the original landowners will retain the remaining 20 percent.
A detailed concept for the project will be formed through a series of design workshops and cooperation with local experts in urban planning, architects, government authorities and the local population. "Our strategy is based on balanced planning and development of the site. The workshops will allow us to come up with the best possible way to cultivate the area. The current concept involves the foundation of a small town or village." Moritz is confident that the project will fulfill a substantial need for housing in the Katowice agglomeration.
Tup's president sees two possible courses of action once the company has acquired the necessary building permits and completed installation of all infrastructure systems and facilities. The next step will consist of dividing the property into individual plots which would either be sold off entirely to private developers or, perhaps, developed in collaboration with investors.
The company is planning subsequent investments, including an expansion of the Living Steel project, some revitalization projects and the creation of a leasing portfolio. It expects to increase its capital to zł.7.28 million, based on the zł.8.7 million in net profit it earned last year. At last month's annual shareholders' meeting, Tup's board decided to pay zł.1.9 of the company's profit out in dividends. Results for 2006 were also formally approved at the meeting, as were plans for a stock incentive program for management and another public offering set for sometime this year.
Tup reports that it will use its capital gains to further strengthen its presence on the Polish market and increase its activity in acquisitions and development throughout the country.
