Danish listed property group Sjaelso is to withdraw from the Polish real estate market due to the financial crisis. Sjaelso, which owns a DKK 274 mln (EUR 38 mln) development portfolio in Poland, said activities will be closed down as the company is no longer able to secure the necessary financing to complete the assets.
Danish listed property group Sjaelso is to withdraw from the Polish real estate market due to the financial crisis. Sjaelso, which owns a DKK 274 mln (EUR 38 mln) development portfolio in Poland, said activities will be closed down as the company is no longer able to secure the necessary financing to complete the assets.
'As a consequence of the general financial weakening of Sjaelso, it is not possible for the company to complete the projects in Poland on its own.' The developer said it has been looking for partners for quite some time, but without success. Meanwhile, the company's lenders have ceased to support the completion of the commercial projects in Poland, it added.
'The credit institutions have offered to extend the loans only on the basis of a sale of the projects at project level,' Sjaelso said. As such, all of the company's developments in Poland will be put up for sale, resulting in DKK 250 mln of write-downs in the company's first-half earnings announced last week.
From now on, Sjælsø will focus on its key markets of Denmark, Finland, Sweden and Norway. In Poland, the company owns the Tower Terraces and Postêpu 22 office projects in Warsaw's Mokotów district, the Scandinavian House residential complex in Warsaw's Wilanów district, as well as shopping centre Porto 55 in Elblag.
