P.A. Nova turning to warehouses

The company also carries out commercial and residential projects. It is planning to sell a few buildings in order to free up some cash. At the end of 2015, the real estate connected with the company’s own investment operations had a total value of PLN 642.5 mln, which was 31.5 pct higher than the year before. “Apart from the growth in value, the growth in the amount of profitable real estate is also crucial,” emphasises Jarosław Broda, the company’s vice-president of finance. Profitable real estate, that which has been leased and generates income month by month, at the end of the year had a value of PLN 625.8 mln, a yearly increase of 64 pct. At the same time, the value of property under preparation decreased from PLN 109 mln to PLN 16.6 mln. This was partly due to the completion of Galeria Galena, among other factors. “At its opening, 98 pct of its space was leased,” said Ewa Bobkowska, the president of the company’s management board. “Units with areas of up to 100 sqm are still available. Poczta Polska [the Polish Post] and a bakery/patisserie will be among those opening in the centre,” Ewa Bobkowska added. In 2015 P.A. Nova generated sales revenue of PLN 138.9 mln – lower than last year, when the company’s turnover amounted to PLN 172.2 mln. “This is because of Galena, which we were developing at our own expense. It was actually a race against time to open the centre last autumn,” explained the president of the company. “We can expect to earn the full income from the new buildings in 2016,” added Jarosław Broda. At the end of 2015 the net profit also decreased – from PLN 20.2 mln to PLN 17.9 mln. “This is the result of sale of two commercial parks,” explained the president of the company. If these two new projects are not taken into consideration, in 2014 the profit would have been PLN 18 mln, so the annual profit would have remained on the same level. “We expect an income of PLN 20 mln from Galena,” said Jarosław Broda. The property developed by the company is financed by loans taken out for specific projects, paid off with the income from the leasing. “This secures our cash flow,” claimed the company’s financial director. At present the company is developing three of its own projects: commercial parks in Sosnowiec and Kłodzko and an warehousing hall in Rzeszów. A warehouse for IKEA and a building for the company’s permanent partner are also under construction. The company is also preparing a housing project in Kłodzko, including the revitalisation of a heritage building and a housing project in Przemyśl (suspended due to legal changes). “We would like to sell some industrial projects to free up some cash,” commented Ewa Bobkowska. “We are definitely looking towards the industrial sector now. The commercial sector is very saturated, especially in the cities where we are operating, i.e. with a population of up to 100,000 inhabitants. There is still some space for commercial parks with areas of 2,000–3,000 sqm for 6–8 tenants,’ added the company’s president, “and we will also continue our cooperation with our permanent partner.”