Dom Development from the sea to Silesia

In 2017 Dom Development is planning to launch the sales of app. 3,600 residential units, around 25 pct more than last year. The vast majority of this (app. 2,200 units) will be put on sale in H1.

“This year we are planning to hand over app. 2,600 apartments to buyers, up from 2,482 last year. This figure will be easy to achieve because we already had 1,300 preliminary contracts signed for apartments in the projects due to be completed this year. This means we had already achieved half of this year’s target last year,” commented Janusz Zalewski, the vice-president of the board and financial director of Dom Development. of the developer, which is the biggest on the Warsaw residential market (15 locations on offer), is aiming to begin its first projects on the Wrocław market this year (it currently owns two locations in the city).

“We are planning to buy another two or three plots in Wrocław and should be able to launch projects on them soon,” revealed Jarosław Szanajca, the president of the board of Dom Development. “The city is better organised than Warsaw in this respect – the formalities involved in launching residential projects are easy to process and resolve,” he added, while also confirming the company’s interest in the purchase of the residential division of Gdańsk-based Euro Styl group. In January Dom Development was granted exclusivity in negotiations over the acquisition of the TriCity’s largest residential developer. “Our opinion about the organisation and operating methods of Euro Styl is very good – they are very similar to ours. We trust its management fully and they will keep their positions after the possible acquisition,” insisted Jarosław Szanajca. “The due diligence process is currently in progress at Euro Styl and the results of this should be published in June, when we will be able to provide more details,” he added.

Euro Styl has been operating on the TriCity market for ten years, during which it has sold 3,800 apartments, 661 of which were sold last year (a y-o-y growth of 24 pct). On the company’s current land bank it would be possible to build app. 2,000 apartments. Dom Development has high levels of cash (PLN 437 mln) and no net debt, giving it significant potential in terms of land purchases, launching subsequent projects and the further extension of the scale of its operations. The company’s management has once again recommended the payment of all of last year’s profit in the form of a dividend equivalent to PLN 5.05 per share.