According to Polish daily Puls Biznesu, LC Corp intends to resume the development of its Calisia Residence project in August. Calisia Residence is located in Warsaw’s Ochota district. After the signing of an annex to the agreement with general contractor Erbud, work is scheduled to start on the project from 10 August 2009. Calisia Residence will offer a total of 92 high-standard apartments, comprising around 7,300 sqm of saleable space.
LC Corp has flagged several times that Calisia Residence would start in 2009 if market conditions improved, thus the news is unlikely to surprise the market. We believe LC Corp’s decision to resume the development of Calisia Residence is rational. Confronted with too much liquidity, LC Corp will not have any difficulties financing the project. We expect the news to have a neutral impact on the stock’s trading today.