UNOFFICIAL TRANSLATION:
Current report No. 23 / 2019
Date of preparation: 2019-06-19
Short name of the issuer: i2 Development S.A.
Subject: Completion of the review of strategic options and update of the Company’s development strategy
Legal basis: Article 17 para. 1 MAR – confidential information.
With reference to information provided, among others, in Current reports No. 20/2018 of March 13, 2018 and No.22 / 2019 of June 19, 2019, the Management Board of i2 Development S.A. with its registered office in Wrocław (the "Company") informs that on June 19, 2019, the Management Board of the Company adopted a resolution on the end of the review of potential strategic options related to the further development of the Company’s operations.
In addition, on June 19, 2019, the Management Board of the Company adopted a resolution regarding the update of the development strategy ("Strategy") of the Issuer’s Capital Group ("Group"), presented in the Company’s prospectus approved on March 30, 2016 by the Polish Financial Supervision Authority ("Prospectus").
The updated Strategy provides for the continuation of the Group’s core business, which is real estate development on the residential and commercial real estate market (services and offices). The Group’s development activity will continue to focus on the implementation of residential projects located in Wrocław. In addition to the implementation of projects from the upper market segment, on which the Group has focused so far, the Group intends to significantly increase the scale of operations through the implementation of projects from the so-called medium segment of the market addressed to a wider group of clients. The aim of the Group is to increase the scale of development activity to the extent allowing the sale of premises at the level of 1,000 items per year. The Group’s development strategy in the housing segment allows for geographical diversification of operations through the Group’s entry into the markets of other major Polish cities.
The updated Group Strategy provides for the creation of a new segment of the Group’s operations – the commercial property segment. The Group’s goal is to create, mainly based on commercial projects implemented by the Group, a diversified portfolio of office and service properties (commercial and service premises) generating stable income for the Group. and, in the case of sales of mature segment assets to external investors, sales revenue. The target value of the net assets of the segment (NAV) is to be at the level corresponding to half of the value of the Group’s equity.
The Group’s strategy foresees continuation and development of the Group’s services in the real estate market (construction and design activities), focused mainly on the execution of development projects implemented by the Group.
The Group’s strategy assumes an independent further development of the Group in the development and construction segment, not anticipating the active search for partners (co-investors) to carry out the group’s development projects, at the same time not excluding such cooperation if the interest of the Company’s Shareholders justifies it. In the Group’s rental segment, the strategy allows, in the medium and long-term, creation of commercial groups based on the commercial real estate portfolio, dedicated rental companies that derive income from renting and regularly paying dividends to shareholders, shares in which they will be offered to external investors.
Signatures of persons representing the Company:
2019-06-19 Marcin Misztal President of the Management Board