IMPACT reports 58.7 million euro pre-sale and revenues in the first semester of the year

IMPACT Developer & Contractor S.A. (“Impact”) (stock symbol IMP), the first real estate developer established in Romania and also the first real estate company listed on the Bucharest Stock Exchange, reports EUR 58.7 million pre-sales and revenues as of June 30, 2023. At the end of the first semester, the company contracted 70% of the completed housing stock, which cumulates 954 dwellings, with a market value of about EUR 155 million.

As of 30 June 2023, IMPACT had a balance of 403 pre-sale and reservation contracts in GREENFIELD Băneasa, LUXURIA Residence, GREENFIELD Copou, and Boreal Plus, with a total value of EUR 46.2 million. Those contracts will translate into sales, as apartments will be finalized in the following periods. In GREENFIELD Băneasa, IMPACT’s iconic project, the contracting rate was 98%, and in LUXURIA Residence, the first residential compound in the country with BREEAM Excellent certification, 80% of the units were contracted.

IMPACT owns a valuable land portfolio in Bucharest, Constanta, and Iasi, of about 71 ha, with development potential for 5 more new sustainable large-scale projects, with a market value estimated at over EUR 1.5 billion. In April, the company obtained the urbanism certificate for the ARIA VERDI project in Barbu Vacarescu, a project with a market value of over EUR 350 million.

Also in the first semester, the company started the construction of a new phase in GREENFIELD Băneasa, with 250 apartments, reaching a total of 982 dwellings in different stages of construction. Another 649 dwellings are to be built in 2024.

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“We leave behind one of the most difficult semesters for both the industry and our company, with challenges generated by the macroeconomic situation to which were added the major increase in interest rates that affected the accessibility of mortgage loans, the impact of legislative changes regarding the VAT threshold for the purchase of housing, as well as measures regarding wages in the construction sector. Specifically for our company, a massive impact was also had by the temporary closure of the Vadul Moldovei road connecting the GREENFIELD Baneasa neighborhood to Sector 1, the legislative procedures necessary to solve this situation being initiated by the administration.

Despite these challenges, we managed to maintain adequate liquidity and to continue at a sustained pace sales and pre-sales of the housing stock worth over EUR 155 million. In the next period, we intend to launch two large-scale sustainable projects: ARIA VERDI in Barbu Vacarescu Blvd., Bucharest – which will include over 850 premium homes, commercial galleries, kindergarten, green spaces and community services, with an estimated market value of over EUR 350 million, as well as GREENFIELD Copou in Iasi – one of the largest sustainable residential complounds in Moldova, which will include 1,062 apartments, community center with kindergarten, shopping galleries, gym & wellness center, restaurant, over 15,000 sqm of green spaces, bicycle lanes and charging stations for electric vehicles – a project with an estimated development value of EUR 175 million.

The replacement of the obsolete housing stock in Romania, which has largely exceeded its life cycle, must be a priority of both the central and local administrations, in order to contribute to raising the standard of living, as well as the level of safety and well-being of the population. IMPACT, as a leader on the affordable residential market and also a developer of sustainable communities, has contributed and contributes to this mission, with over 10,000 homes delivered in over 30 years of activity and will continue to deliver quality housing, at current nZEB and BREEAM standards,” declared Constantin Sebeșanu, CEO IMPACT Developer & Contractor.

GREENFIELD Plaza, the shopping center within the GREENFIELD Băneasa neighborhood, reached an occupancy rate of 89% as of June 30, 2023. The center is dedicated to the GREENFIELD community and includes the Wellness Club (fitness room, indoor and outdoor pools, saunas, massage, squash, group classes and classes for children), restaurants, supermarket, cafes, pharmacy, dry cleaning, beauty salon and car wash. GREENFIELD Plaza has a market value of over EUR 25 million.

IMPACT maintained a constant liquidity position in the first semester, with EUR 10.6 million in cash and cash equivalents and its debt-to-assets ratio at 29%. As of June 30, 2023, the total asset value adjusted in accordance with EPRA standards is EUR 364 million.