JW Construction pooh-poohs PLN 21 mln loss

Over the period the developer was working of twelve projects with 3,450 units in four Polish cities. The company plans to launch a further 25 projects with a total of almost 7,300 units, which also includes warehouse, aparthotel and retail projects. “For H1 2018 we have recorded sales revenues of almost PLN 90 mln, with a net loss of PLN 21 mln. The figures do not recognise a number of sales due to the construction completion dates and handover dates of our projects. Furthermore, the figures were lowered by a one-off sale of real estate in Wroclaw for a loss of more than PLN 15 mln,” claims Małgorzata Szwarc-Sroka, a member of the supervisory board of J.W. Construction Holding. “The company decided to sell the property because it failed to meet the technical standards assured by the initial purchase agreement, which meant that in the state it was no profitable project could have been developed,” she adds. She also announced that there would be considerably more deliveries in H2 of the year after the completion of such projects as the Varsovia aparthotel on ul. Kasprzaka, stage II if the Zielona Dolina residential estate on ul. Verdiego in Warsaw and the Bernadowo Park II project in Gdynia. Despite the loss, the developer was pleased by its recorded sales level over recent months, although lower than in the year. “To summarise over H1 2018, we can again report sales that met our targets. Their high rate continues, despite a small drop of 11 pct in the number of units sold compared to last year. We sold 758 units over H1 of this year, compared to 850 during the same period of 2017,” adds Małgorzata Szwarc-Sroka.

A building permit has been granted for the last stage of its flagship project Bliska Wola on ul. Kasprzaka in Warsaw. Bliska Wola Tower (stage D), will include almost 1,500 residential, aparthotel-commercial and office units with a useable area of almost 62,000 sqm. Construction work will begin in Q3 2018.

J. W. Construction has also been granted a final building permit for another stage of terraced houses (30 homes) near Ożarów Mazowiecki just outside Warsaw. Construction work has also begun on a small residential estate called Wrzosowa Aleja of 81 units near ul. Kartograficzna and ul. Lewandów in Warsaw's Białołęka district.

Over H1 2018 the developer completed three projects comprising nearly 750 units, the majority of which have been sold (although the sales can only be booked on delivery, which are mostly planned for Q3 this year). An aparthotel on ul. Kasprzaka in Warsaw of 457 units opened in August under the Varsovia Apartments Kasprzaka brand. The units include kitchenettes, balconies, a reception area and a laundrette. In Warsaw, the company’s Zielona Dolina III residential estate with 54 apartments was granted an occupancy permit. Meanwhile in Gdynia the company completed the Bernadowo Park project consisting of 236 apartments.

Also over the period, the developer extended its land bank with plots in four locations, including Skórzewo near Poznań, where 280 apartments are to be erected; Pruszków (475 units); Gdańsk (600 units) and Szczecin (623 units). Furthermore, the company was in negotiations which ended in Q3 2018, to purchase land in Zawada near Kraków, where the company is to build more than 1,700 units. Over the next few years J.W. Construction Holding plans to build 25 new residential, aparthotel and warehouse projects with a total area of almost 500,000 sqm on the land held.