Marvipol heads for Soho

Marvipol has been granted negotiation exclusivity until April 30th for the purchase of 33 pct of the shares of Soho Development, the flagship project of which is Soho Factory in Warsaw’s Kamionek district (Praga Południe).

“Marvipol’s development strategy for the development sector involves focusing on projects with above-average profitability in terms of the capital invested. In the implementation our strategic goals we are also analysing the soundness of investments in development companies with attractive project portfolios,” commented Mariusz Książek, the CEO of Marvipol. The parties to the negotiations have yet to confirm the conditions of the possible transaction.

Marvipol closed 2016 with record financial results. Its consolidated revenue amounted to PLN 892.4 mln last year (compared to PLN 694.2 mln a year earlier). This almost 30 pct increase in sales was accompanied by the doubling of its operating profit, to PLN 98.2 mln and a 150 pct increase in its net profit, to PLN 69 mln. The consolidated revenue of the group’s development segment came to PLN 229.9 mln in 2016 compared to PLN 275.1 mln in 2015. The development wing of the company closed the year with an operating profit of PLN 24 mln (PLN 13 mln a year earlier) and a net profit of PLN 16.8 mln (PLN 2.4 mln in 2015). The factors that significantly contributed to the profit from the development sector were: including part of the income from the sale of the Prosta Tower office building in Warsaw (sold for PLN 120 mln) in its figures, as well as progress in the construction of logistics and warehouse projects carried out by Marvipol in partnership with Panattoni. In 2016 the joint venture of the two developers finished the construction of the two buildings making up Panattoni Park Warsaw, with a warehouse area of 48,000 sqm. In addition, Marvipol and Panattoni started the construction of four other projects in 2016, located in Grodzisk Mazowiecki near Warsaw and in the Silesian conurbation. Last year the group generated a profit of PLN 8.4 mln from its share in the profits of companies constructing logistics project. The residential section of Marvipol’s development business also closed last year with positive sales dynamics. The company concluded 627 sales contracts for apartments and service units (a y-o-y growth of 4.5 pct). This sales growth resulted from stronger sales of apartments in its Central Park Ursynów project compared to 2015, as well as the launch of the sales of two new projects – Riviera Park and Bemowo Residence.

“Last year’s results represent a good base for our rapid expansion in this segment in 2017. The minimum goal for this year in the residential segment of our business is sales growth of a dozen or so per cent while maintaining its profitability. This year Marvipol’s residential offer will be added to by new stages of Central Park Ursynów and Riviera Park as well as some new projects. We are particularly hopeful about the launch of the most spectacular development project in the group’s history to date – an exclusive apartment building on ul. Grzybowska in central Warsaw. In the logistics and warehouse segment we are aiming to complete the sale of the Panattoni Park Warsaw complex in 2017 while continuing work on the construction of subsequent projects. We have also been actively working on new logistics and warehouse projects,” revealed Mariusz Poławski, the member of the board at Marvipol in charge of the group’s development segment.