Ronson: expanding property portfolio

2010-03-16

The property developer Ronson intends to add another approximately 170 new flats to its portfolio in H1 2010. In the first two months of this year the company found buyers for 57 of the 276 flats on its books at the end of 2009, Parkiet reported.
In the first half of this year the developer plans to begin selling flats from stage 3 of its Imaginarium project as well as flats from its Osiedle Wislane estate in the Warsaw suburb of Lomianki and its Impressio complex in Wroclaw. In total these projects will add more than 170 new flats to Ronson's portfolio. Before the end of June the company's board is also considering expanding its portfolio to include another 250 flats forming part of phase 2 of its Gemini investment in the Polish capital as well as a new project on Warsaw's Czluchowska Street.
In 2009 the company noted revenues of PLN 116.3m (€30m) and a net profit of PLN 21m (€5.4m). Its gross margin last year exceeded 34%, which was possible thanks to purchasing land for its investments at attractive prices. The company's senior management expects a reduced margin this year as a consequence of, among other things, deteriorating market conditions – its margins in its most popular projects will be above 20%.