Platinum Properties Group (PPG) gained 14.5 million zloty from the sale of 58 million shares, which represent 8.3 per cent of shares in the increased share capital. The funds obtained in this way are to be used for financing the company’s activities.
The success of the issue of shares proves right the development strategy of Platinum Properties Group, which is based on implementing development projects with extraordinary profitability on the invested capital. We intend to spend the funds obtained from the investors on financing the development of the company. Apart from currently existing development projects, we actively research the market to find new investments on which we would be able to get oversize return on equity in a shorter period of time than on other projects already owned by the company, commented Marcin Wróbel, the president of the management board in PPG.
Currently, Platinum Properties Group implements two development investments. The first one is a housing estate in Russia. The second one is located in Poznań and it is concerned with building an office block. Both investments are currently getting administrative permits, in accordance with the company’s business assumptions.
Administrative processes on both projects, particularly the issuance of permits necessary to start the investment in Lobnya in Moscow district, take much longer than we originally expected. In view of the above, apart from intensive work on these projects, we would try to gain new development projects for our company’s portfolio, projects which will be implemented as soon as possible, guaranteeing a faster rotation of capital, at the same time maintaining attractive return on equity on the invested capital, said Marcin Wróbel.