Follow-up on previous communication regarding SARS-CoV-2 (the novel coronavirus)
On Sunday 15 March, Quartiers Properties AB (publ) (“Quartiers” or “the Company”) issued a press release on account of the ongoing coronavirus pandemic. In it, the company explained the measures it had taken and laid out the next step. Here is another update.
Spain, where the Company runs operations, is one of the countries hardest hit by the pandemic. As a result, the Spanish government is introducing new measures to limit the spread of the virus on an almost daily basis. Today, 20 March, the government has decided to shut all hotels in the country within seven days. This means that Boho Club and Quartiers’ apartment hotel in Benahavis will be ceasing operations completely, with the exception of the 15 or so long-term guests residing in the apartment hotel in Benahavis.
At the same time, the Spanish state is progressively introducing financial aid measures for affected companies and sectors in which the Company is active. Against this background, the Company is doing its utmost to make the best of the situation. For example, companies in Spain are being given the opportunity to grant staff a leave of absence, which entails a temporary period of unemployment where the employee receives unemployment benefit from the state and the Company is only required to pay 0–25 percent of the social charges. It also means that these employees will be immediately available to return to work when the business reopens. The Company has therefore applied to grant 64 percent of its staff a leave of absence. In addition, 24 percent of staff have been laid off permanently so that the Company will initially be working with a lower cost mass when it resumes its activities. With these measures in place, and because the Boho Club in particular was in a start-up phase, the consequences of the lost revenues and the reduced costs are expected to have a relatively neutral effect on the Company’s cash flow up to and including June.
At the same time, however, the effects of the coronavirus pandemic are expected to mean that it will not be possible to complete the ongoing refinancing within the time horizon originally envisaged, but work in this area will nevertheless continue over the first half of 2020. The Company’s potential lenders are still showing interest but decisions are taking longer in these extraordinary circumstances. In parallel with this process, the Company is working actively with its Spanish bank contacts to share in the state-subsidised liquidity loans which, for Quartiers, are estimated to amount to a maximum of EUR 1 million. Depending on how the situation develops, the Company may additionally find itself having to look into other types of financing.
While Quartiers would naturally have preferred to have business carry on as normal, an opportunity now exists for streamlining operation of the Company’s hotel facilities and achieving continued improvements with elevated quality of the customer experience when business resumes. Project planning and development of the new “Ocean View” project is also continuing.
The Company will continue to issue press releases regarding relevant events as and when they occur.
If you have any questions, please contact:
Marcus Johansson Prakt, CEO
Phone: +46 72 018 5998
The Company in brief
Quartiers Properties is a Swedish property development company that provides top-flight design and quality, with operations on the Spanish Costa del Sol. The Company was founded in 2014 and has since built up a portfolio of investment properties and project properties. The Company develops, sells and leases properties.
Mangold is the Company’s certified adviser. Mangold can be contacted on +46 8 503 015 50 or by email@example.com.
Quartiers Properties AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided for publication through the agency of the contact person above at 18:30 on 20 March 2020.