Qualis Properties carried out a private placement in January, attracting almost EUR2.1 million from investors, by selling bonds with a 3-year maturity and a fixed interest rate of 9%, payable quarterly. The 20,937 bonds have a face value of EUR100/ bond and were bought by 51 investors, of which 49 individuals and two legal entities.
Through this bond issuance, the Issuer intends to make an investment by purchasing a land worth EUR5.3 million, on which it intends to carry out a premium project with 700 apartments and 13,000 sqm of retail space. The deadline for starting the project is August 2021 and the deadline for completing the project is December 2024 (the project includes 9 blocks). Qualis Properties estimates that the market value of the project will be approximately EUR 70 million.
The company has been developing residential projects since 2017, in areas with a good development dynamic in Brasov, and the residential projects have been carried out in stages. Currently, Qualis Properties has two residential projects underway in the Tractorul neighborhood, in Brasov, with a cumulative market value of EUR 54 million.
The company is in the process of purchasing (pre-contract phase – 75% advance paid) a plot of land with an area of approximately 30,000 square meters in the Civic Center area of Brasov, to develop a housing complex for customers with above average incomes. The market value of the project is estimated at over EUR60 million.
At the same time, the company’s strategy aims to expand the activity in the area of individual houses, in the metropolitan area of Brasov, covering the need of residents for larger homes, with their own yard and modern facilities. The company also targets the industrial sector, and, to this end, it acquired a land of 39,150 sqm in July 2020, in the urban area of Brasov, Triaj neighborhood, where it intends to develop, in stages, depending on demand, a stock of approximately 20,000 sqm halls with rental destination.
In the 2017-2020 period, Qualis Properties registered an accelerated increase in turnover starting from a value of RON231,679 in 2017 and reaching RON20.4 million at the end of 2020. The company registered a net profit of RON2.9 million in 2020 (-17% versus 2019), and for this year, it estimates a net profit of RON 6.1 million and a turnover of RON40.2 million (almost double compared to 2020).
Qualis Properties has a share capital of RON90,000, divided into 90,000 shares, with a nominal value of RON1/ share. Entrepreneur Catalin Dumitru Mandru is the owner of the company, with 95% of the shares on his own name, and the rest of 5% through Kron Build SRL.
SSIF BRK Financial Group assisted the private placement and, at the same time, the listing of the bonds on BVB’s MTS, as Authorized Consultant. BRK Financial Group will continue to assist Qualis Properties for the next 12 months, after listing, to meet investor reporting and information requirements.