Ronson Development posts stable sales of units y/y in Q1 2019
In Q1 2019 Ronson Development has contracted the sales of 174 units versus 188 in the corresponding period of 2018. The number of units delivered to customers that will be recognized in the income statement for the first three months of this year amounted to 142 (304 in Q1 2018).
“We began 2019 with an offer that was strongly sold out, amounting to only 562 units. Despite this fact we managed to achieve very strong sales of 174 units in Q1. This result is close to the one generated in the corresponding period of last year and at the same time it is much better than in Q4 2018. And the new projects that we launched at the end of Q1, amounting to over 460 units in total, only partially contributed to the Q1’s sales and shall have stronger impact in next quarters,” said Andrzej Gutowski, Vice-President of the Management Board, Director of Sales and Marketing at Ronson Development.
Among the new investments announced this year spanning more than 1,000 units in total Ronson Development has already launched the execution of the third stage of the Miasto Moje project in Warsaw’s Białołęka district (196 units), the fifth stage of the Panoramika project in Szczecin (115 units) and has launched the construction of the Wilanów Tulip project (150 units). Additionally, in March pre-sales of the first stage of the Ursus Centralny project consisting of 138 units began. As the construction of Ursus Centralny has not started yet, the pre-sales there did not contributed to the Q1’s sales. Ultimately, approximately 1,600 units will be built in this investment. That means it will be the largest project in Ronson Development’s history and another “city in the city” concept investment that has been successful in the best-selling Miasto Moje project. Ursus Centralny will be a self-sufficient property development with a rich selection of commercial units, an internal boulevard with a recreational offer and a school and educational complex.
“We are counting on these newly-launched projects and further investments we are preparing this year to enable us to achieve our sales target of roughly 800 units in 2019”, said Andrzej Gutowski.
The number of units delivered to customers that will be recognized in the income statement for Q1 2019 amounted to 142. This is primarily related to the schedule for the construction of these investment projects.
“In February 2019 we completed the construction of the second phase of the Miasto Moje project numbering 148 units in total. As at the end of March, of these we had handed over roughly 100 units to their buyers. Nova Królikarnia will also account for a significant percentage of Q1’s revenues as we delivered the keys to 14 large luxury apartments with high average unit price. In addition, at the end of March we obtained the occupancy permit for the City Link II project consisting of 189 units. All of them had been sold long before construction was completed and we delivered to customers several units still in Q1. We assume that most of the remaining units will be handed over to our customers in Q2 of this year”, pointed out Rami Geris, Vice-President of the Management Board and CFO of Ronson Development.
In full-year 2019 Ronson Development plans to complete investment projects encompassing more than 1,100 units in total, of which 382 units were completed in Q1.