• The President of UOKiK notified the public prosecutor's office of possible irregularities in business activity of companies belonging to the Gent Holding group.
• They encourage consumers to invest in real estate for rent in private dorms.
• The Office is concerned about transfers of funds paid by clients within the group.

In March 2019, the Office was notified of possible irregularities in business activity conducted by the Gent Holding group. It was mentioned therein that operating costs of the companies, including the cost of remuneration and maintenance of the premises, were high compared to low sales. This may indicate that current business is financed with debt and thus poses a threat to the safety of investors’ money. In April, the Office of Competition and Consumer Protection initiated an investigation procedure which showed that irregularities could in fact occur.

Gent Holding is a capital group consisting of 26 entities, including the following companies: Equal Real Estate, Szkolna 7, Nad Stawem13, Do Studzienki 40‑42, Do Studzienki 67, św. Marcin 58. They are to run dormitories in Kraków, Katowice, Gdańsk and Poznań under the brand LIV.

Information obtained by the Office shows that only a dormitory located at al. Jana Pawła II 74 in Kraków is in fact being built. The sale of apartments is handled by Equal Real Estate.

The Office analysed the financial statements of Equal Real Estate for the year 2018, the conditions of corporate bonds issue and the company’s explanations. The Office had its doubts about the fact that Equal Real Estate collects customers’ funds in the form of loans, and then grants further, unsecured loans to other entities from the Gent Holding group. Such operations are typically restricted for banks. In addition to loans, Equal Real Estate collects funds through the issue of corporate bonds. According to the terms of issue, the money thus collected may be lent to the affiliated entities. Investors, including consumers, should be on their guard against an increased risk here.

It is disturbing that only one dormitory is being built. In fact, it is more than likely that consumers’ payments are used to finance operations of the companies from the Gent Holding group, says Marek Niechciał, President of UOKiK. We all still remember that the case of transferring money to companies within one capital group had already occurred, namely the case of Gant Development, which is handled by the Regional Prosecutor’s Office from Wrocław, adds Marek Niechciał.

The Office also has doubts as to whether Equal Real Estate has fairly presented its situation in the financial statements, which – despite a heavy loss on sales – shows profit due to property overestimation. It is likely that other companies from the Gent Holding group also failed to comply with reporting obligations because they either did not file the statements with the National Court Register at all or did so belatedly.

The Office notified the prosecutor’s office of possible violations of the provisions of the Banking Law and the Accounting Act committed by the companies from this group. The Office also notified the Polish Financial Supervision Authority thereof.

Consumer service:

Phone: 801 440 220 or 22 290 89 16 – consumer helpline
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumers’ ombudsmen – in your town or district
Financial Ombudsman – www.rf.gov.pl – when a complaint is rejected
Regional Consumer’s Centres: 22 299 60 90 – Dlakonsumenta.pl

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL