Current report no. 20/2020
Date: March 26, 2020
Short name of issuer: i2 Development S.A.
Subject: Impact of SARS-CoV-2 virus and COVID-19 disease on the activity and financial results of i2 Development S.A. and the i2 Development S.A. Capital Group
Legal basis Article 17 para. 1 MAR – confidential information
In connection with the Regulation of the Minister of Health of March 20, 2020 on the announcement of the state of the epidemic in the Republic of Poland, as well as with reference to the recommendations of the European Securities and Markets Authority (ESMA) of March 11, 2020 and the recommendations of the Financial Supervisory Commission (KNF) of March 12, 2020, the Management Board of i2 Development SA (hereinafter: "the Issuer") provides information on the possible impact of the spread of the SARS-CoV-2 virus and COVID-19 disease on the business, financial results or prospects of the Issuer or the i2 Development S.A. Capital Group.
To the best knowledge of the Issuer’s Management Board, as at the date of publication of this current report, it is not possible to determine the final impact of the SARS-CoV-2 virus, which is largely dependent on factors independent of the Issuer. However, the expected outcomes of the epidemic may have potentially adverse effects. However, this does not change the fact that, as at the date of this report, to the best knowledge of the Issuer’s Management Board, the above does not significantly affect the current operations, financial results or prospects of the Issuer or the i2 Development S.A. Capital Group.
Based on preliminary analyses, the Issuer assessed possible future effects of the epidemic, in particular on:
– the dynamics of sales of residential or service premises – in the form of: delays in signing reservation, preliminary, development contracts and acts transferring ownership of premises, in particular through the limited operation of notary offices and possible delays in considering the credit applications of the Issuer’s clients and disbursement of loan tranches, as well as possible clients’ illnesses or quarantines,
– extension of administrative proceedings in the Offices (regarding the issuing of decisions, among others, building permits and occupancy permits), proceedings regarding obtaining financing in Banks (in the scope of financing current and planned development projects), as well as court proceedings (in particular in the land and mortgage register)
– construction works schedule – in the form of: possible delays in construction works related to limited access to building materials and possible shortages of staff at subcontractors and thus on the timeliness of investment implementation (current and the ones being prepared in accordance with the adopted schedule for new investments).
In the opinion of the Issuer’s Management Board, depending on the duration of the current situation and the significance of restrictions introduced by state authorities, there is a potential threat of an economic slowdown, which may have a long-term impact on the real estate market, including the demand for residential, service and office premises, and also on the availability and terms of investment financing and schedules of development projects.
At the same time, the Issuer’s Management Board informs that it has taken all actions to minimize the effects of the abovementioned factors. Situation of the i2 Development S.A. Capital Group as at the date of this report, in the opinion of the Management Board, is stable.
The Issuer informs that it regularly and carefully monitors the situation related to the spread of SARS-CoV-2 virus and COVID-19 disease and indicates that, to the extent required by law, it will inform in subsequent reports about new conditions that may have a significant impact on operations, financial results or perspectives of the Company and the i2 Development S.A. Capital Group.
Signatures of persons representing the Company:
2020-03-26 Marcin Misztal – President of the Board