briefs

A profitable year for Echo

Kielce based developer Echo Investment announced that it netted over PLN 11.7 mln in 2001, with gross profit exceeding PLN 15.9 mln. Echo Investment's holding company generated a net profit of over PLN 20.3 mln (over PLN 29.8 mln gross).
One of Echo Investment's biggest projects currently underway is the Galaxy retail and entertainment centre in Szczecin.

Aareal Bank floats on the stock exchange

Shares in the German based Aareal Bank, a real estate financier, were recently quoted for the first time on the Frankfurt stock exchange. Aareal Bank, previously DePfa Bank, operates in Poland.

PLN 5.5 mln available for purchase of land under ul. Siekierkowska

Warsaw Centrum Borough authorities have allocated PLN 5.5 mln to the Wawer district for the purchase of land and some properties located under ul. Siekierkowska. The land will be used to widen ul. Wał Miedzeszyński.
138 sites along Wał Miedzeszyński will be bought at first, with a further 122 to be purchased (reaching as far as ul. Trakt Lubelski). So far the Wawer district has spent PLN 12.2 mln on purchasing the sites. A further PLN 15 mln is expected to be assigned to this purpose. (Source: Puls Biznesu)

First mortgage bonds issued by Śląski Bank Hipoteczny

Śląski Bank Hipoteczny S.A. is planning to issue its first mortgage bonds, worth a total of c. EUR 3 mln in August. The bonds will be purchased by the Polish arm of the ING group.
The bonds will be issued based on the mortgage receivables purchased by ŚBH from ING Bank Śląski. The bank will issue more bonds, whose value will be greater, in November of this year.

U-turn for VAT on flats and construction services

Polish government officials have announced that they no longer want to increase VAT on flats and construction services as part of negotiations for EU accession and will request that the European Committee maintain the lower VAT rate (7 %). After Poland's accession to the EU, however, VAT on construction materials will increase from 7 to 22 %.
The government's position changed as a result of protests from the construction industry. Many construction company representatives, however, are still not satisfied with the partial concession by the government and are demanding that VAT rates on construction materials are not increased.