Altex sets up real estate unit, plans to float it

Altex group, including Altex Impex, Romaniaes main retailer of electronics and electrical home appliances, plans to set up a real estate unit by merging Cometex Suceava and Real Estate companies, which are indirectly owned by businessman Dan Ostahie.
“We intend to merge the two companies, Cometex and Real Estate, in the near future and the resulting firm, the real estate unit of the group, will be run from the CEO position, by the same Gabriela Bodron (the current CEO of the two companies),” stated Dan Ostahie. In the wake of the merger between the two companies, the resulting real estate unit could be floated on a Stock Exchange.
According to Altex officials, Cometex Suceava owns 59 retail outlets in the central area of Suceava city, whose area has increased from 22,000 square metres to 28,000 square metres, following the merger by absorption with the “Nada Florilor” firm.
Altex group took over Cometex for 7.5 million euros in 2005, in the wake of a deal on the Bucharest Stock Exchange.
Whereas, at that time, the company was making losses of 36,000 euros, Gabriela Bodron says its current financial situation indicates a profit of 700,000 euros.
Cometex has recently announced it was in talks with around 4 clients for the sale of a retail space of 2,300 square metres, to be sold for a sum that may reach 4.5 million euros.
The companyes manager said that the company was also considering the development of new retail spaces through its own resources.
Real Estate, the second real estate company in the group, owns around 14,000 square metres of retail space countrywide.
Altex, the main business of the group owned by businessman Dan Ostahie, last year registered a turnover worth 220 million euros, down 20% year-on-year.
The decrease came amid the companyes restructuring, and the strategy related to the development of large retail stores in parallel with the closing of stores of around 100 square metres.
“For 2007, the company targets a sales level similar to the one reached in 2005, as the market is expected to witness growth by several percentage points. However, white goods will see further decreases, to a smaller extent, but along a similar trend,” said Ostahie.
With regard to the companyes future development, the chairman of the group says he is also considering a possible floatation. “(…) No decision has been made as to the stock exchange the company will be listed on,” said Ostahie.
At the same time, the company is also considering expansion on foreign markets by simultaneously opening several large stores in Bulgaria or Serbia.