Gant trimmed debt

2012-01-27



Gant Development redeemed PLN 13.3m (€3.1m) worth of bonds and repaid a PLN 30m (€7m) loan which it obtained for the implementation of the Kaskada project in the Wola district of Warsaw, said the company in a communique.
The company's senior management announced that more than half of the loans obtained for the project were paid back in just one month of the project’s conclusion. Accordingly, the company has repaid its financial liabilities totalling PLN 105m (€24.4m) towards Raiffeisen bank. Furthermore, the developer has paid its dues under a PLN 20m (€4.7m) loan which it used to build the Pastelowa Kraina housing estate in Wroclaw. In the opinion of Gant’s senior management, debt financing is a less costly option than equity, so the company will continue to issue bonds and use the issue proceeds to fund new projects. However, final decisions about project funding will depend on which of the available options are less expensive on a case-by-case basis.
Gant is currently building the Odra Tower building in Wroclaw and intends to launch the construction of the second phase of the Kaskada project in Wola. The company is also building apartments with the total floor space of 60,000 m² in Opole, Wroclaw, Krakow, Poznan, Gdansk and Polanica-Zdroj. New projects are planned to commence in 2012 in various locations, including Warsaw, Poznan, Wroclaw and Wroclaw area.

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