Cordia reports €38.2m profit from Polnord takeover

As part of its international expansion strategy, Cordia International Zrt. recently acquired a 93-percent stake in Polish residential developer Polnord S.A. A detailed review of the market value of Polnord’s assets resulted in write-offs in the amount of PLN 52.2m to be made by Polnord in its first quarter balance sheet, according to Polnord’s current report. The value of actual write-offs is even lower than Cordia expected before the acquisition. In accordance with this, Cordia may post around PLN 170.4m in profit from the recent takeover. “This profit will be originating from the expected difference between the equity value of Cordia’s stake in Polnord, according to Polnord’s balance sheet as of March 31 2020, planned to be published mid-July, and the acquisition cost spent by Cordia,” said Tomasz Łapiński, CFO of Polnord. Polnord has several valuable plots suitable for residential projects. Locations include Warsaw’s Wilanów district. “The Wilanów Smart City is a large-scale, urban regeneration mixed-use project launched by Polnord and will consist of several residential and office buildings with a total area of more than 100,000 sqm,” said Tibor Földi, Cordia’s chairman of board.