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Warimpex releases results

Alex Hayes 30 May 2018

Alex Hayes

Journalist

+48 22 356 25 20
alex.hayes@eurobuildcee.com

Alexander Hayes is currently working as a journalist for Eurobuild Central & Eastern Europe magazine. Originally from the UK, he moved to Poland in 1995 and has been working in real estate for over four years. He has a BA in english literature from the University of Buckingham.

Warimpex releases results
Warimpex has now finalised the purchase of the B52 building in Budapest
EUROPE Warimpex has released its Q1 results and reports reduced property holdings due to a partial portfolio sale and an associated decline in its business operations. After exchange rate losses the company reports a result of minus EUR 3.0 mln.

New cash flow is expected from mid-year due to acquisition in Budapest and a completion in Łódź. The sale of eight hotel holdings last year also meant the elimination of sources of revenue for Warimpex Finanz- und Beteiligungs. The company is now shifting its focus back to growing and building up the property portfolio. “We will achieve these goals by completing our ongoing development projects and launching new projects as well as by purchasing cash flow generating assets that offer potential for the future, as defined by our strategic orientation. At the same time, by completing selective property sales at favourable terms we can secure proceeds that will enable us to rapidly execute reinvestments,” claims Warimpex CEO Franz Jurkowitsch.

In Budapest, the company concluded an agreement to purchase the B52 Office property. This class A office building has over 5,200 sqm of space and is fully occupied, which will provide ongoing income once the transaction closes – presumably before the end of the second quarter. Warimpex also disposed of a development property that is also located in Budapest in May 2018 for EUR 5.4 mln.

Revenues in the Hotels segment fell from EUR 9.5 mln to EUR 2.4 mln as a result of the portfolio sale.. Revenues from the rental of office properties rose from EUR 2.5 mln to EUR 3.8 mln, largely due to the completion of the fully occupied Bykovskaya multi-use building at Airportcity St Petersburg. Overall, consolidated revenues contracted from EUR 12.4 mln to EUR 6.7 mln.

The reduced portfolio volume also resulted in a decline in EBITDA from EUR 2.3 mln to EUR 1.3 mln. EBIT went from EUR 3.4 mln to EUR 1.2 mln, and the financial result dropped from EUR 2.4 mln to minus EUR 4.1 mln due to exchange rate losses. This led to a result of minus EUR 3.0 mln for the traditionally weak first quarter (2017: EUR 4.7 mln).

Developments in Łódź, Kraków, and Białystok In terms of development projects, construction is progressing according to plan for the Ogrodowa office building in Łódź and the Mogilska office building in Kraków. Leases have already been signed for a portion of the space at both office buildings. The Ogrodowa office building will start generating cash flows upon its completion at the end of the second quarter. Also in Kraków, Warimpex is planning the construction of an office building with around 21,000 sqm of space on a development property next to the Chopin Hotel. In Białystok, Warimpex owns a building plot that was expanded through the purchase of adjacent lots last year. Four office properties will be built on this site in multiple phases.


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