13 March 2020
JML FINANCE (LUXEMBOURG) SARL
Julius Meinl Living Makes Further Progress in 2019
Julius Meinl Living PLC, through its group companies, acquires prime real estate assets for development into serviced residences that the group will then operate itself (“Julius Meinl Living”).
Julius Meinl Living is fully owned by the Meinl family who, over the last 150 years, have demonstrated their expertise in Central and Eastern Europe in consumer goods, retail and real estate. The aparthotels will have a premium positioning and will operate under a brand that reflects the Meinl family heritage.
2019 Audited Accounts
Julius Meinl Living is today releasing its audited consolidated 2019 accounts. Highlights of these include:
- A fair value gain of €3.2 million on Julius Meinl Living's property on Senovazne in Prague, in the Czech Republic
- Profit before tax of €2.9 million
- Gross cash of €20.2 million and net debt of €4.6 million
- Gross assets of €64.5 million, up from €51.3 million in 2018
- Total equity of €31.6 million
The Senovazne property will have 168 guest rooms and apartments. The main construction works commenced in July 2019 and are continuing according to plan. The property is targeted to open in Q3 of 2021.
The property in Belgrade's “K District” in relation to which Julius Meinl Living has signed a binding forward purchase agreement is not reflected in the accounts. Once complete, the Belgrade property will have 129 guest rooms and apartments in addition to 96 underground parking spaces.
Julius Meinl Living's strong balance sheet reflects the issue of a first tranche of bonds by JML Finance (Luxembourg) S.a.r.l. under its EMTN programme. The bonds are traded on the Luxembourg Stock Exchange and on Euronext.
The accounts can be accessed by investors at www.juliusmeinlliving.com.
Strategy and Prospects
Julius Meinl Living's aim is to open at least 15 properties with a combined total of 2,000 guest rooms and apartments over the next three to six years. Julius Meinl Living is therefore continuing vigorously to seek additional pipeline opportunities in its target cities. In this regard, Julius Meinl Living is seeking properties that:
- Have a minimum floor area of 10,000 m2
- Are in the centres of major Central European cities
- Are either existing properties requiring renovation or change of use, or are new developments with permitting already in place
- Lend themselves to its operating model, with at least 100 premium apartments
In so doing, Julius Meinl Living will seek to minimize development risk, whilst focusing on the timely opening and ultimate potential of each property.
Julius Meinl Living will also continue rapidly to progress work on the operating side of its business. Updates will be provided in due course on the design, branding and technology offer that are intended to make Julius Meinl Living properties “go to” destinations, and to make Julius Meinl Living the leading provider of serviced residences in Central Europe.