Sjælsø Gruppen continues its international development by establishing a fully-owned subsidiary in Poland.
The Polish property market is currently seeing strong upward trends with substantial growth in the retail sector and new opportunities within residential and commercial property. The market has matured in recent years and is now driven by professional players from Poland and Western Europe.
Poland's membership of the European Union in 2004, the ongoing stabilization of the Polish economy, strong growth rates in purchasing power, and an expanding GDP as well as falling unemployment provide a solid foundation for Sjælsø Gruppen's future activities in Poland. Sjælsø Gruppen's decision to enter the Polish market is based on these stable socio-economic conditions and the country's positive economic development. Consequently, revenue from project development will primarily be secured by the utilization of the Group's core competencies rather than involving any significant risks during the development processes.
Stronger development opportunities
The new Polish subsidiary will strengthen Sjælsø Gruppen's project potential. Sjælsø Gruppen already has a strong position in the Nordic retail sector and this move will open up new opportunities for further developing relations with Nordic retail chains. In addition, Sjælsø Gruppen's competencies within other market segments, including residential construction, can be transferred to the Polish market in partnership with local management.
Management in place
From the outset, Sjælsø Gruppen will benefit from a strong local organization comprising an experienced Scandinavian management team with many years of local experience. Working with key staff with a local background and a proven track record, Sjælsø Gruppen expects to be able to complete its first projects and make an impact in the market within a relatively short period. For competitive reasons, the composition of the management team at the Polish subsidiary cannot yet be disclosed.
Profit forecasts for 2006 and 2007 maintained
The Polish venture supports Sjælsø Gruppen's long-term profit potential. The Polish activities, however, are not expected to impact on the Group's result until 2008. Consequently, the expectations for 2006 and 2007 are unchanged, i.e. a pre-tax profit of approx. €85-100 million (DKK 700800 million) for 2006 and approx. €100-120 million (DKK 8001,000 million) for 2007.