The Bank Polskiej Spółdzielczości has increased the amount of the investment credit for J.W. Construction Holding S.A. up to PLN 50 million. The sum is intended for the construction of a housing estate in the Wawer district in Warsaw. Credit repayment term has been prolonged until the end of 2010.
“We have cooperated with the Bank Polskiej Spółdzielczości for many years. A positive credit decision issued by yet another financial institution reflects our trustworthiness in the eyes of Polish banks. The project in the Wawer district is being realized according to the schedule. Financing of construction projects with credit funds is a typical procedure in the development industry and is by no means a symptom of liquidity problems,” – explains J.W. Construction Holding S.A. Financial Department Director, Małgorzata Szwarc-Sroka.
Situated in Korkowa Street in Warsaw, the Bursztynowe Housing Estate will consist of over 300 dwelling units.
Ten four-story detached buildings covered with a pitched roof and including balconies and underground garages are going to be erected. The estate will be fenced and guarded round the clock. The buildings will be finished with clinker bricks. The growing housing estate is surrounded by richly forested areas of Wawer. In the vicinity of the project area spread the Rembertowski Forest and the two reserves: Olszynka Grochowska and King Jan III Sobieski.
The general project contractor is J.W. Construction S.A., a spin-out construction company formed from the Holding organizational structures. The construction of the project commenced in June 2008. Currently, the buildings’ shell is constructed.
The project is planned to be finalized in the first half of 2010.
Different floor area dwelling units are available at the moment: from one- to three-room apartments. The prices range from PLN 5600 to 7400 per 1 square meter. A dozen or so apartments qualify for the “Family on Its Own” program.
The original credit agreement for the amount of PLN 16 million was signed in June 2006. The Company has cooperated with the Bank Polskiej Spółdzielczości since 2002.
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J.W. Construction Holding S.A. is the largest Polish apartment developer operating mainly in Warsaw, but also in Łódź, Gdynia and abroad. The Company is the leader of the Warsaw housing market where it has been operating as developer since 1994. Except for development projects, the Company deals also in construction business, being the general contractor of the majority of investments. J.W. Construction owns and operates Hotel 500 chain including 5 hotels in Zegrze, Stryków, Tarnowo Podgórne, Cieszyn and Św. Lipka. On 4 June 2007 the Company made its IPO on the Warsaw Stock Exchange. In 2007 J.W. Construction net earnings amounted to PLN 148.1 million on PLN 781.1 million in revenues.