The Israeli development company Ramet has announced that it intends to become more engaged on the Polish market. The first steps have already been taken. Together with quoted Mostostal Export, Ramet has created a company called Bukowińska Development, which is to build a high rise housing block in Warsaw. Both companies have a fifty percent stake in the enterprise. The developer has set aside PLN44m for this project. Miriam Doron, managing director of Ramet says that his company has not set an upper limit on the amount it is prepared to commit to Poland and says that it could place as much as USD80m — USD100m in this country in the next three years. Other than housing, the company is also looking at bridge construction and is hoping to bid for work in the capital. Ramet is also looking for other infrastructure work such as the dual carriageway between Warsaw and Łódź.
The experience of Mostostal Export will be invaluable here.
The Israeli firm is not planning any capital commitment with any Polish companies although it is hoping to work alongside Mostostal Export in a housing project in the Pole Mokotowskie in Warsaw called Eko-Park.
Miriam Doron says that Poland is a country where it is possible to do business and earn money. He notes the housing shortage and feels he can fulfil a need for the middle classes who can afford around USD80,000 for a 70 - 80sqm flat.
Miriam Doron even believes that this market could show profitability of well into double figures for the construction industry.
Tomasz Bleszyński, a member of the board of the Polish real estate federation PFRN feels that this could be an error. He thinks that building for the middle classes could be a trap as people falling into this category may not be able to afford this housing whilst those who can may seek something which he considers to be better as he may not wish to be identified with his new neighbours.
Ramet has been on the market for 56 years and is now one of the largest private developers in Israel. Dun & Bradstreet Israel put it in eleventh place in their league table of companies classed in terms of turnover with USD88m passing through their hands last year. 2001 was in fact a disappointing performance for them as sales fell by two percent. The poor performance of their domestic market has forced them to seek greener pastures and their eyes turned towards the United Kingdom, Hungary and Poland.