Description of activity

The activities of BUDEXPO focus on leasing and management of the properties with a total area of approx. 80 thousand. sq.m, which are held in perpetual usufruct of the Company. BUDEXPO operates on the Warsaw real estate market and its customers mainly include business entities involved in construction and equipment for houses and apartments. The company rents out commercial, storage and office spaces. The Centrum Handlowe Budownictwa BUDEXPO in Warsaw is well known throughout the country; it offers the customers a wide range of construction-related goods and services. The BUDEXPO’s development strategy provides for the allocation of considerable expenditure to modernize the technical infrastructure of the properties held in perpetual usufruct of the Company. In addition, the Company intends to take steps aiming at strengthening the awareness of the BUDEXPO brand among customers and companies and to improve the image of the Centrum Handlowe Budownictwa BUDEXPO. Four other shopping centres, which also sell construction materials and equipment for houses and apartments, have been erected in the surrounding of the Centrum Handlowe Budownictwa BUDEXPO. Their offer is not, however, significant in terms of competition for the tenants operating in the building owned by the Company. A large volume of the home improvement and supplies market and the need to use environmentally friendly technology and energy-efficient products in residential construction creates demand for modern equipment and materials, which are offered by the BUDEXPO tenants. Unrelenting demand for space in shopping centers, which are well-located and, like BUDEXPO, have a strong market position, is also considered as a big opportunity.