Develia wants to be much more active in buying land this year

by   CIJ News iDesk III
2023-04-18   11:37

Develia wants to be much more active this year in acquiring land for its land bank, according to the company CEO Andrzej Olisło. He also hopes that 2023 will bring it deals in the private rental housing (PRS) sector thanks to an improved market environment.

"This year we want to replenish our land bank. Although good land is never easy to come by, not only during a recession, we will be more active in this area than in the previous year. Standalone transactions are the preferred path of development, but we do not exclude M&A transactions and joint ventures with smaller developers who, for example, do not have the funds to complete a project," Oślizło said.

Last year, the company spent more than PLN 150 million on land.

"Our strategic perception is not changing. Selling apartments to residential customers is core business, but we are also creating space for PRS, and we plan to expand in this area. Last year, buyers were not helped by the unstable environment and rising financial costs. The situation is stabilizing a bit, according to analysts, inflation will fall and interest rates should not rise, so one can presume that this market will begin to return the favor. We believe we will be able to close the first PRS transactions this year," the CEO also said.

In February, the company reported that management is targeting to sign the first contracts for PRS projects and sell 600-800 units to funds.

Develia is one of the largest developers in Poland, with residential and commercial investments in Warsaw, Wroclaw, Krakow, Gdansk, Lodz and Katowice. Since 2007. Develia (formerly LC Corp) is a company listed on the Warsaw Stock Exchange. In 2022, the company generated PLN 1,067.9 million in sales revenue.

Source: Develia and ISBnews