Gant enjoys positive share offering

2010-03-12

The company Gant Development has successfully completed a rights issue. A total of 3.22 million shares were sold to shareholders at a price of PLN 15 (€3.8) a piece and the developer earned PLN 48.4m (€12.4m) in this way.
The cash generated by the issue will go towards financing three of the company's projects: an investment on Warsaw's Sokolowska Street, a project in Morena district in Gdansk and an investment in Wroclaw's Stablowice district. Gant has already secured full financing for the project in the Polish capital, thanks to a loan worth PLN 45m (€11.5m). A total of 280 flats will be built in the first stage of the investment and there are also plans to prepare land for parking places as well as commercial-retail buildings. The construction work is scheduled to begin in April. The developer will launch a total of 15 investments this year, including in Krakow, Poznan, Opole and Katowice, with popular segment housing investments predominating.
In 2010 Gant forecasts a net profit attributable to shareholders of the parent company of PLN 58.6m (€15m) as well as revenues of PLN 312.8m (€80.2m). In turn, in 2011 it predicts financial results of PLN 108m (€27.7m) and PLN 427.3m (€109.6m), respectively. The new investments are to be financed with the help of financial surpluses from its developer operations as well as with cash from a bond issue and from bank loans.