Mostostal Export sells prime site land in Warsaw to repay bank loans

Mostostal Export (ME), a building contractor is in negotiations over a contract with BRE.locum, BRE Bank's real estate subsidiary, concerning the sale of its land on Warsaw's Pole Mokotowskie. According to unconfirmed information the agreement has already been signed. The transaction, worth around zł. 28 million, is to be paid in several stages. A zł. 5 million advance payment has apparently already been paid to the construction company. The next installment of zł. 18 million will be transferred to Bank Handlowy, as part of repayment of ME's loans. The remaining zł. 4 million is to reach the company this fall. ME's revenues from this contract will be between zł. 9-10 million, an amount worth almost a fifth of the value of the holding. According to unofficial information ME has also received bids for other assets and is likely to sell other properties before the end of the year. (Parkiet, p. 1) A.K.