Update with regard to the coronavirus
Quartiers Properties AB (publ) (“Quartiers” or “the Company”) operates in the Marbella region of the Spanish Costa del Sol and, in the same way as the rest of the world, is currently experiencing the effects of the global coronavirus pandemic. During the weekend, for example, the Spanish Government introduced extraordinary restrictions limiting the freedom of movement throughout the country. The measures, which entail closure of all business not essential to the functioning of society, have been imposed to limit the spread of the coronavirus. Hotels have, however, been permitted to stay open, as they are considered part of an infrastructure necessary to ensure accommodation is provided for people who are staying in the country and do not have a residence of their own.
Quartiers identified the situation at an early stage and has prepared appropriately. Additionally, Boho Club, for example, has no lifts, no narrow corridors or similar, and is therefore eminently suitable to provide first-class accommodation – even for people who need to self-isolate during the current situation in Spain. As such, the hotel is open as normal and will be serving all meals for hotel guests, in both their bungalows and their rooms.
Quartiers’ apartment hotel in Benahavis is also still open. At both facilities, the Company has adopted special procedures to safeguard the health of its guests while making their stay as comfortable as possible.
Quartiers Properties is complying with the guidelines from the Spanish authorities and taking all possible safety measures at its facilities to limit the risk of infection for existing guests and for people who need accommodation during their stay in the region.
By preparing thoroughly and adapting its business to the current situation, the Company has succeeded in finding new solutions which make it possible to keep a range of activities operating normally. At the same time, the Company has already managed to reduce its staff significantly, although additional cutbacks are expected over the coming week. This makes it possible to keep costs at a reasonable level in relation to the scope of the business and income. Additional adaptation of the cost base will be introduced on an ongoing basis, depending on how the situation develops.
It is expected that the current refinancing process will take longer than anticipated on account of the ongoing pandemic. However, the Company has held intensive discussions with a number of interested lenders and will remain in dialogue with these parties, even though a final decision may be delayed due to the prevailing circumstances.
Quartiers also held talks with banks regarding special loans for companies whose business has been particularly affected by the coronavirus, which include Quartiers on account of its focus on the tourism industry.
Moreover, the Company is working to obtain a share of the loans which both the Spanish and the Swedish governments intend to make available to companies hard hit by the current conditions. Both governments are shortly expected to issue new directives about this, as well as with regard to the handling of staff, freedom of movement to foreign countries and so on. In addition, Quartiers will be continuing its intensive efforts to deal with the situation in the best possible manner, as well as to quantify the financial effects and redraft plans for its ongoing construction projects as and when necessary.
The Company is therefore planning to update its shareholders with a new press release on Friday 20 March, concerning planned and implemented measures, as well as the estimated financial effects of the measures implemented. Separate press releases will be issued regarding extraordinary incidents arising from the current conditions.
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 emailing email@example.com.
Quartiers Properties AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided through the agency of the contact person stated above for publication at 23:30 on 15 February 2020.