Robyg will stick to what it's good at, according to the company's president, Oscar Kazanelson Courtesy of TBT i Wspólnicy

Adam Zdrodowski: Robyg is expected to debut on the Warsaw bourse this year. What are your expectations for the listing?

Oscar Kazanelson: We are planning to enter the Warsaw Stock Exchange by the end of this quarter. The value of the IPO should amount to approximately zł.100 million. The money raised through the offering will be spent on future investments. All our ongoing projects currently have secured bank financing, so we are not worried about our cash flow.

Robyg is one of a few developers now entering the WSE, more than two years since the last company from the sector debuted. Is this a sign of improving sentiment in the industry?

We started planning the bourse debut a few years ago but we had to reorganize the company first, as it used to consist of a number of special purpose vehicles. But I think that this is a good time for both the bourse and the residential segment. In my opinion, the Polish market is now better than the other European markets in which we are present.

At least in the middle-market segment, in which we operate, there is strong natural demand. In 2008 we sold 80 units, in 2009 – 300, and in the first half of this year alone, over 290. When it comes to the second half of the year, well, we hope it will be even better. We have recently started new phases of projects in [Warsaw’s] Wilanów and Żoliborz districts.

Did the economic crisis force you to change your offer in any way?

There are always prospects for sales when you come to the market with a project which has the right size and a sensible price. Today, a good product is a medium-sized unit. When we started our projects in Wilanów, the average apartments there were sized from 90-95 sqm. Now they are approximately 60 sqm, which means we have redesigned some buildings.

It is better to change things on paper when it is still possible and sell, than to proceed with the original project and be left with unsold apartments. The prices of our units have changed too – nowadays approximately 30 percent of our clients are “Family on its Own” [state-subsidized] mortgage takers.

Do you expect home prices to rise in the near future?

I expect prices to increase by five to 10 percent over the next year. One reason will be the fact that land prices have not decreased. It is difficult to find any bargains and, contrary to previous expectations, neither Spanish developers nor investment funds have so far begun to sell off the assets that they acquired before the crisis.

Currently we are still building on plots which we bought five to seven years ago – our land bank will allow us to build some 6,000 apartments over the next four to five years. But obviously we are looking at new offers too. We are currently in negotiations concerning plots in Warsaw’s Wola and Saska Kępa.

What are your investment plans for the near future?

We want to remain active in the mid-market, which has proven resistant to the crisis and is reliable at all times. We will continue our investments in Gdańsk and Warsaw as well as launch our first project in Wrocław. For the time being, we are not planning expansion beyond these three cities. In the long-term perspective, we want to be one of the five best residential developers in Poland.

Are you planning to diversify your activities by entering the commercial property segment as well?

No. We have experience in the residential market and we believe that everyone should do what he or she is best at.