The decision was taken because of the cultural similarity and market opportunities.
After looking into the different alternatives for diversification, Grupo Sando has opted for the Polish market to commence its strategy of making its property business international. The process has now culminated in the founding of Sando Inmobiliaria Polska SP z.o.o. and the opening of an office in Warsaw, in an exceptional spot in the city, in a unique and very modern office block, the Warsaw Financial Center.
The decision was taken after considering different possibilities. As well as having a great number of cultural affinities with Spain, this is a market that is very similar to the Spanish one in terms of size, with around 40 million inhabitants. Moreover, in the first quarter of the year, the industry has grown by 5.7% as a result of residential construction.
According to data from the Polish Government, there are a large number of families who share a home. It has also been noted that a large proportion of homes are in a poor state of repair.
From the macroeconomic point of view, the entry of Poland into the European Union also brings clear advantages; the Polish monetary authorities are implementing tight controls on the interest rates, managing to bring these down from around 20% to the current 8%, as well as achieving a period of stability. Furthermore, the 2004-2006 infrastructure plan includes an investment promoted by European funds of €16,709 million, which will create a major growth in income per inhabitant.
All these factors were considered in the studies carried out by Grupo Sando and made the company decide to develop a great deal of property activity in the country, through the acquisition of land and the construction, promotion and sale of properties.
Grupo Sando’s strategy has been the creation of a stable structure aimed at long-term activities. Based on this, the company is creating a local team whose manager has already been hired. This is an executive who already enjoys considerable prestige in his country. It is hoped that activity as a developer will begin shortly, thanks to the investments that are now being received.
The opening of the Warsaw office is part of the strategy of a dynamic, cutting-edge, diversified, international company. Grupo Sando is aware of the difficulties of this challenge: differences in the legal systems, in consumer patterns, etc. To resolve these difficulties, Grupo Sando has been preparing itself in recent times, providing itself with very well trained, enthusiastic and motivated human capital.
Malaga, 22nd of November, 2005.
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