J.W.Construction Holding S.A. will build the Hilton Hotel in Wrocław
Press Information Ząbki, 24 May 2010
J.W.Construction Holding S.A. concluded a joint venture agreementregarding cooperation in the implementation of the prestigous hotel and apartment projectin Wrocław altogether with its infrastructure. Within this investment, Hilton Hotel in the standard of 5 star hotel is to be implemented. The Company's participation in the project in another step toward diversifying its revenue sources.
The agreement stipulates, thatJ.W. Construction will buy 50 percent of shares of Wings Properties from Cyprian Star Enterprises Limited . The value of the project is estimated at over PLN 330,000,000 - up to EUR 22,000,000 of this amount shall be provided by J.W. Construction. The amount of PLN 2,000,000 will be transferred to the escrow account, the rest will be disbursed as soon as Wings Properties obtains external financing in the number of 60 percent of the value of works. After obtaining the external financing by Wings Properties it will be gradually disbursed as works progress.
- As we announced, we are successively entering the market of hotel and office-commercial space. The investment in Wrocław will become our new flagship. We acquired 50% of shares
in Wings Properties, the Company which has the right to implementation of a very lucrative project
with an estimated value of the expenditures of aboutPLN 330,000,000. The Company was looking for an investor, which could complete required own contribution to a total value of works in the amount of 40%. On the other hand, we were looking for a project in which we could use our executive potential and in the same time could be in our portfolio. Apart hotel facilities, the project include not only commercial and office space but also suites.
This is a very profitable project with a positive impact on the Group's results - says Małgorzata Szwarc-Sroka, the Director of the Economic Division of J. W. Construction.
OVO, hotel and suite complex, referred to in the agreement, was awarded the prize "Future Building" as the best commercial and recreational facility in Cannes, 2008.
Conditions precedent to the agreement is to obtain a consent of Raiffeisen Bank by Star Enterprise Limited to dispose 50percent ofshares of Wings Properties and the consent of Hilton Manage to accession of J.W. Construction to the consortium. The stock-listed company shall esureWings Propertiesa conclusion of the loan agreement for EUR 2,000,000 in the scope of loans to the amount of EUR 22.000.0000. The fulfilment of these 3 conditions should take place within 60 days since signing the Agreement.
J.W.Construction Holding S.A. is the largest Polish housing developer present mainly in Warsaw, but also in Łódź, Gdynia and abroad.The Company is the leader in the Warsaw housing market, where the Company has run a business since 1994. The Company, apart from implementing development projects, also run a building activity as a general contractor for most of investments.J.W. Construction is the owner and operator of a network of hotels under the name Hotele 500, which consits of four hotels in Zegrze, Stryków, Tarnowo Podgórne and Cieszyn.On 4 June 2007 the Company made its debut on the Warsaw Stock Exchange.