Briefs
Arka real estate fund fully subscribed
BZ WBK has announced that the allocation of certificates for its "Arka BZ WBK Funduszu Rynku Nieruchomości" real estate investment fund was fully subscribed. The fund is the first in Poland to be open to individual private investors. Pension funds dominated the take-up of the institutional tranche, though the EBRD took a 15 pct holding. The total capital raised reached 339.5 mln zl which, through leveraging, will allow investments of up to 1.15 bill zł.
Bank changes direction
The Rheinhyp-BRE Bank Hipoteczny (Mortgage Bank) has announced that it will pull out of the market for residential mortgages in order to focus on the commercial sector. As well as financing real estate development the bank is now looking to offer medium to long-term re-mortgaging facilities to local authorities, based on their mixed-use facilities and administrative offices. Debt consolidation services will also be offered. Rheinhyp-BRE has budgeted for expenditure of PLN 50-100 mln for this activity for this year. In May of this year the bank succeeded with two issues of mortgage backed bonds with a value of EUR 25 mln and USD 25 mln respectively. The total amount of mortgage bonds issued by Rheinhyp-BRE Bank Hipteczny is now 950 mln zł. The total amount of loans on its books is PLN 2,184 mln of which PLN 1,861 mln are commercial loans.
Cinema City hoping for an IPO in 2004
Cinema city, the multiplex cinema operator has announced that it has intends to float on the Warsaw stock exchange in order to finance its expansion plans. Citigroup bank is advising the Dutch registered company on the IPO, though the company's CEO, Moshe Greidinger, said that further development of the group would proceed whether the WSE float succeeded or not. Currently operating 118 screens in Poland after investing USD 100 mln, Cinema City hopes that by the end of 2005 a further 98 screens will have been added to the tally, at a cost of approx. USD 40 mln.