Archicom is consistently working towards achieving its medium-term goal of selling 4,000 apartments per year. Since the beginning of the year, the company has purchased and secured attractive land in Warsaw, Wrocław, and Krakow, allowing for the implementation of over 200,000 sqm. The first half of the current year also saw successful launches — with about 2,500 apartments hitting the market within 12 projects. In the first half of 2024, Archicom sold 882 units, recognising revenues of PLN 325.3 million from the 398 units handed over to clients.
One of the most critical pillars for achieving Archicom’s ambitious sales objectives is landbank development. The company opts for land with advanced permits for rapid introduction of new investments and attractive land requiring more complex administrative processes. This approach, however, allows for the implementation of larger city-forming projects of the “destination” type. In the first half of 2024, Archicom acquired land allowing for the construction of an additional 4,000 apartments in Poland’s major cities.
In the second quarter of 2024, we were focused on acquiring additional plots of land. Among other things, we acquired over 25,000 sqm in Mokotow, Warsaw. We also made our first purchase of land in Katowice. We secured over 66,000 sqm in Wrocław and Warsaw. We are engaged in several more exciting processes of land acquisition – says Waldemar Olbryk, President of the Management Board at Archicom.
Stable sales and the introduction of new investments
Archicom reported sales of 472 apartments in the second quarter at a total of 882 in the first half of the year. The current offer includes 3,237 units, representing a 100% increase compared to the end of 2023. During this period, sales of 1,565 units began within six investments: Krakow (Wita), Lodz (Flow), Poznan (Wieża Jeżyce), Warsaw (Stacja Wola and Towarowa 22), and Wrocław (Przystań Reymonta).
We are implementing a growth strategy that assumes reaching the goal of 4,000 apartments sold in 2025. To achieve this, we have set ourselves an intermediate goal of selling 2,600 apartments in 2024. We are building an offer to achieve a sales trajectory appropriate for the goal of 4,000 apartments sold in the following years – adds Waldemar Olbryk, President of the Management Board at Archicom.
Financial stability as the foundation of growth
The value of the Archicom Group’s assets at the end of the first half of the year amounted to over PLN 2.8 billion, representing a nearly 15% increase compared to the end of 2023. This illustrates the implementation of the adopted strategy of selling 4,000 units per year.
The company’s results for the first half of 2024 are consistent with the delivery schedule and the implementation of the strategy of selling 4,000 apartments annually in Poland’s largest cities. The revenue from sales generated by our company in the first half of the year totalled PLN 325.3 million. Financial stability is essential for organizational development and expansion, and thus – achieving Archicom’s business goals. We pay special attention to this area by diversifying investment financing sources. In the first half of 2024, we carried out an issue of series M9 bonds maturing in 2Q 2027 and series M10 bonds maturing in 2Q 2028 for a total amount of PLN 358.4 million. The capital raised is earmarked for building potential in the form of secured land – summarizes Agata Skowrońska-Domańska, Vice President of the Management Board at Archicom.
Plans for the remaining part of the year
In the coming months, Archicom will continue to achieve its long-term goals. The company plans further purchases of plots with advanced building permits, also in the lex developer format, and work on the costs of package implementation to optimize construction costs.
Source: https://managerplus.pl/archicom-podsumowal-i-polrocze-2024-r-24865
