Ronson returns to form
ResidentialThe company’s explanation for the considerable deterioration of its results by pointing out that in H2 2014 it did not complete any significant projects. However, the situation improved when the majority of apartments in its Sakura project were handed over as well as the majority of apartments in the third stage of the Verdis project in Q2 of the year. It currently has ten projects under construction (Sakura IV, Moko I and II, Espresso II and III, Tamka, City Link I and II, Verdis IV, Kamienica Jeżyce I and II, Młody Grunwald II, Impressio II as well as Panoramika II), 8 projects are completed and available to buy (Verdis I, II and III, Sakura I, II and III, Naturalis I, II and III as well as Młody Grunwald I). At the end of June, Ronson’s offer included 1,051 apartments. In H1 2015 the company sold 410 apartments, in line with its annual plan, which envisages selling over 800 apartments in entire 2015. Initially the company was planning to hand over app. 800 apartments to buyers; however, this number has now been amended.
“We are afraid that we will not manage to reach 800 apartments handed over, but we should exceed 700,” said Tomasz Łapiński, the financial director at Ronson Development. Work on at least eight new projects totalling over 1,000 apartments is now planned to be launched as well as marketed, while seven projects with over 820 apartments are set to be completed. The largest project due to be launched this year is Nova Królikarnia, with a total of 340 apartments over an area of 32,000 sqm.
The company has also acquired a building permit for two projects in Wrocław – Van Gogh (295 flats and an area of 16,500 sqm) as well as Picasso (151 apartments over an area of 6,100 sqm). The design of these Wrocław buildings was prepared by the Abart Project studio. Subsequent stages of City Link are scheduled to be launched in 2015 (178 apartments in the second stage are to be offered to buyers in Q3 2015) as well as the Chilli City project (the fourth stage, involving the construction of 34 apartments). One of the company’s plans this year is to extend its land bank through the purchases of plots in Warsaw and Poznań.
“We are planning to buy land in Poznań for app. 200 apartments as well as one plot on each side of the Vistula River in Warsaw,” revealed Andrzej Gutowski, the sales and marketing director of Ronson Development. “The total budget is PLN 50 mln,” he added. In H1 2015 Ronson Development purchased a plot in Warsaw’s Wola district, on the corner of ul. Skierniewicka and ul. Wolska neighbouring the City Link project. “Around 300–350 apartments are to be built on the site, in buildings with eight or nine floors,” explained Andrzej Gutowski. The construction work, according to designs by CK Architekci, is to start at the end of 2016 and early 2017. The current total bank debt of the company amounts to PLN 72 mln while its bond debt amounts to PLN 190 mln. Last year the company suffered a loss of 15 mln, but is currently generating a net profit of PLN 2.5 mln. In 2016 Ronson is planning to complete and obtain occupancy permits for over 1,000 apartments.
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