MK Inwestycje announced in April a revival of its housing project called the “Widok” apartments, a modern residential building designed by the Medusa Group architectural studio. The developer stated in a press release that construction works would start on the turn of May and June 2010. By now the construction works have not yet started. Bartłomiej Ślezioński, President of MK Inwestycje explained the reason.
“We have decided to postpone the start of construction works. It is connected with the source of financing. As the market is recovering, banks requirements are more and more reduced for loan contracts. If we sign the contract a few weeks later, we expect to get the loan on better terms. Anyway, I can assure the project fulfills all terms of bank loans including a pre-lease agreements’ level and we just wait for the propitious moment to sign the contract. The construction works would launch in August this year. The postponement will not change a schedule and the building will be concluded on time, late 2011.” – Bartłomiej Ślezioński explained.
The President of MK Inwestycje has also related to the market situation in general. “There was a time some years ago when banks had provided financing to developers which started projects on a speculative basis, with no pre-lease agreements secured. I think this time is the past and it will not come back soon. Banks will grant a loan only for projects which entered a fixed level of pre-lease agreements. There will be no exceptions. Nowadays, hardly anybody decides to start construction works on a speculative basis, even if a developer is ready for a self-financing of its investment. That is why the pre-lease agreements are so important these days. It shows a level of interest in a project and market demand, it helps to predict a success. A shortage of tenants interest is a clear sign to change a project, its design, building materials or even a localization.” – he said. “MK Inwestycje have conducted several market observations and we are pleased with a demand as well as a sale price level of our investment. The local market is improving and we are positive about a success of the “Widok” apartments.” – Bartłomiej Ślezioński added.
The „Widok” residential building will deliver 42 apartments in the four-storey facility covering a total area of 2 760 sq. m.