Pro Kapital to go ahead with shopping mall project in spite of IPO failure13.09.2012, 10:36
Real estate developer Pro Kapital Grupp that recently announced an initial public offering of its shares in order to finance the construction of a large shopping mall project in Tallinn and then cancelled the IPO says it is determined to start breaking ground for the shopping centre, writes Äripäev.
The company plans now to ask for a bank loan to finance its large-scale development projects. If banks say no to funding all three projects, the company says that its priority is the shopping mall in Peterburi road in Tallinn.
“Our shopping mall project has been developed the point where we have made the planning and are waiting for the building title. As for apartments, supply is at present higher than demand both in Tallinn and Riga so it’s not going to restrict our other projects,” said Allan Remmelkoor, CEO of Pro Kapital Group.
Remmelkoor did not disclose the amount of loan that the company was going to apply for.
Pro Kapital expected to raise up to 76 million euros with the offering. The cash was going to be invested in three development projects including a shopping centre on Peterburi road in Tallinn, and two residential quarters, one in Tallinn and the other in Riga.
The shopping centre in Peterburi road would have 130,400 square metres of floor space and cost 89 million euros to build.
Paolo Michelozzi, CEO of Pro Kapital, says that the timing perfect is excellent for starting new developments.
"We see development of the Baltic economies and think now it is a good time to invest in new real-estate developments. If we think the time is right for development, we hope that investors also believe in this market and investments in the region. The image of the Baltic region is positive among international investors."
The current major shareholders of Pro Kapital Group are the Italian businessman Ernesto Preatoni along with his affiliates (37.82%), Estonian businesswoman Evelyn Tihemets (26.09%), a Russian businessman Vladimir Maslov (11.53%), an Icelander David Trausti Oddsson (5.11%) and another Italian, Giuseppe Prevosti with his affiliates (8.36%).
In 2011, Pro Kapital posted a revenue of EUR 17.5m and a net profit of EUR 50.1m, with its portfolio of 11 properties valued at EUR 180m by Newsec agency.