CEMAT A/S INTERIM REPORT, H1 2025, unaudited
1. Obtaining the legal title to plots
3. Obtaining the building permit
The CeMat Group has control of the land through the Having received the decision regarding re-zoning of the
right of possession to the site, the right of perpetual land, the CeMat Group needs to start pre-development
usufruct and ownership rights. Part of the property is and design work in order to obtain the building permit.
not entered in the land and mortgage register and The pre-development works cover the design work,
control of the land is maintained through possession.
obtaining all the administrative permits, including
building permits and media connection permits, and
selection of the bank financing and general contractor.
The appointed specialist legal team is working to
execute CeMat’s strategy.
4. Pre-selling of the project
Control of the land through perpetual usufruct or
ownership rights is one of the necessary conditions for
considering a plot of land as an investment product.
Once the building permit has been obtained, CeMat’s
goal will be to pre-sell the projects. Depending on the
type of space, it will be a sale either to an institutional
investor or an individual client or several individual
clients/users. In our opinion, a pre-sale minimises the
risk to the success of the project.
2. Re-zoning of the land
There is no local master plan for the majority of the site.
According to the study of conditions and directions of
spatial development and land use adopted by the
Warsaw city council, the majority of the site is located
in an area zoned for service use, with single plots
designated for roads. Only five plots are covered by a
local master plan mainly for roads. CeMat needs to keep
an open and active dialogue with the city authorities
about the reclassification of land from its current service
use to an alternative use.
5. Financing
For further development, it is necessary to obtain
additional financing through bank loans or investor
financing.
6. Construction time
The estimated time needed to proceed from obtaining
the building permit to completion of the construction is
between 18 and 24 months. A residential unit is
handed over when the customer obtains control of the
apartment and payment is made of the entire amount
due under the sale agreement, after receipt of a valid
occupancy permit for the building.
Re-zoning of the land is a long process and the CeMat
team is supported in it by architects and lawyers. The
goal is to prepare a new master plan or obtain an
individual zoning decision, which requires a dialogue to
be maintained with the city architect on the most
beneficial solution for CeMat’s land.
CeMat is working with top Polish architecture firms to
find the best possible solutions for each plot and
prepare the possible scenarios for the master plan. As
a result of the new approach, in 2021 and H1 2022,
CeMat successfully obtained two individual zoning
decisions for plots and will continue with similar efforts
in the coming years.
After all the milestones above have been achieved, there will be an opportunity to significantly
increase the value of each of the plots in the current portfolio for the best possible price. The
scope of the additional work of the CeMat team for each of the plots and projects will be analysed
on an individual basis, taking into account the potential risks, time frames, human resources
and possibilities of obtaining additional benefits versus the current land value. Based on these
factors, the final decision will be made on the benefits of the development project, taking into
account the potential profit on cost factor.
In February 2024, CeMat announced its strategy for 2024–2027. The Group intends to continue
its leasing business on its own properties, as well as develop its real estate development
business. The company’s operations will focus on two areas: leasing and development activities.
FINANCIAL REVIEW
•
Income statement
Revenue of the CeMat Group was DKK 19.4 million in H1 2025 (H1 2024: DKK 20.0 million). The decrease
in revenue is a result of lower revenue from the sale of utilities to tenants, while rental revenue increased
by 2% in comparison to the same period in 2024. The lower proportion of utility sales in the CeMat
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