Practic Bucharest, a Romanian real estate player, aims to expand its assets on the property market, showed an announcement by the company.
The statement came in the context of Practic’s entry from the Rasdaq to AeRO stock market. It indicated that the company has plans to develop a residential complex, commercial and office buildings of over 30,000 sqm in the centre of Bucharest and an office building of about 5,000 sqm in Primaverii area.
The projects are part of Practic’s medium and long term investment policy, including the modernization and reconfiguration of older spaces.
These projects are expected to start generating revenue starting with the second quarter of 2018, the company estimates. Its predictions show the turnover would rise from RON 32.5 million in 2017 to RON 39.4 in 2018 and to RON 63.13 million the next year. Profit is expected to record a similar pattern, rising from RON 11 million in 2017 to RON 12.5 in 2018, respectively RON 23.2 million in 2019.
Practic – formerly ICL Alimentara Sector 6, until 1990 – activates in renting of real estate. The company has commercial spaces totalling 34,564 sqm, office space area of 11,390 sqm, other spaces summing up 3,680 sqm and 33,206 sqm of land.
The company is one of the largest owners of commercial property in Bucharest, with 34,564 sqm, representing approximately 4 percent of the total 900,000 sqm of such space estimated for 2015 in the capital.
Its most important clients are retailers Mega Image and Profi Rom Food, with shares of 10.9 percent and 10.5 percent in turnover in the first quarter of this year, and also Raiffeisen Bank with 6.1 percent and Romanian Commercial Bank with 4.4 percent.
Practic posted a turnover of RON 32.2 million last year, up from RON 31 million year on year. Net profit dropped at RON 17.2 million lei in 2014, from RON 19.2 million in the previous year.
The company had been listed on Rasdaq stock market for 18 years and has moved to AeRO market of the Bucharest Stock Exchange. 15 companies from different economic sectors have moved to AeRO, following Rasdaq dissolution. At present, on the market admitted 115 companies to trading, with a cumulated market capitalization of RON 1.7 billion (EUR 386.3 million).
Practic’s main shareholder is businessman Radu Timofte, with a stake of 48.4 percent while a 32.5 percent package is owned by IBTC company. The remaining shares are owned by legal entities – 10.1 percent or individuals – 9.2 percent.