Mostostal to invest in building of low-cost apartments

Mostostal Gdansk is to invest in the real-estate development market. "We want to build apartments for people on an average income as the luxury apartments sector is already satiated," said Mostostal chairman Lech Walczak. Initially the projects will be carried out where the company already owns land in Gdansk, Gdynia, Sopot and Warsaw. However, Mostostal Gdansk is also to cooperate with its major investor Gdynia Shipyard, which also owns some very attractive land. Mostostal wants real-estate development to be its major area of activity. "By the end of the year real-estate development will constitute 20% of the company's overall sales," said Walczak. The first projects will be financed from a zl. 30 million bond issue. In its 2001 financial plan, Mostostal is forecasting a net profit of zl. 10.7 million on sales of zl. 400 million. However, the company had a first quarter loss of zl. 2.4 million. In spite of this, Walczak is optimistic a few recently-signed contracts will be extremely profitable for the company. (Parkiet, page 5) J.K.