IMPACT Developer & Contractor ended the year 2018 with an operating income of RON 101.8 million from the sale of apartments, parking lots, land and houses. Of the total number of dwellings traded, the bulk (228 apartments) was sold at Greenfield Baneasa. The net profit was RON 20.7 million, down 60 percent compared to 2017, and most of it was made in the last quarter of the year.
In addition to the purchase contracts reflected in the financial reporting, last year, 197 sale and purchase pre-contracts for apartments worth RON 96.1 million were concluded in the two projects that are currently in different stages Greenfield Baneasa and Luxuria Domains Residence.
These will be shown in revenue as of the year 2019, when it is estimated that the final sale-purchase contracts are expected to be concluded. Thus, the total value of the apartments sold and pre-contracted in 2018 amounted to RON 197.9 million lei, 68 percent more than in the previous year.
“For IMPACT, 2018 was a good year in terms of sales, especially as the end of the year was marked by announcements on changes to the legislative framework with potential impact on the real estate market. Our good results demonstrate first of all the attractiveness of the projects we build. In addition, we have succeeded in supporting our projects, to a large extent, in equity, with the indebtedness in the reporting period being below 38 percent. We continue in 2019 at the same pace, proposing to start the work on at least one other real estate project in parallel with the existing ones,” said Bogdan Oslobeanu, CEO of Impact Developer & Contractor Group.
Although traditional studios and 2-room apartments were “best sellers,” last year, under “out-of-stock” stocks, the mix of units sold changed in favor of the 3-room and 4-room apartments. The financial results also reflect the non-recurrent costs recorded last year, including the amicable settlement of the Brooklyn Property Management dispute.
Impact is currently underway two large residential projects in the north of the capital, Greenfield Baneasa and Luxuria Domenii Residence. These two projects with unique characteristics on the Bucharest real estate market have a total market value of approximately EUR 1 billion and will reach a total over 7,000 homes by 2028.
In 2019, the Platanes Entity, the third phase of development of the Greenfield neighborhood, will be completed by delivering the last stock of apartments, with a total of 192 units. The total surface area of the Greenfield neighborhood, which is scheduled for 2028, is 60 hectares. In addition to housing blocks, Greenfield will also include a shopping and relaxation area – Greenfield Plaza, with an area of more than 10,000 square meters, which will offer residents, right next to the house, all those amenities needed for a quality urban life: sports hall, restaurants, etc. Greenfield’s advantages over its residential segment are unique on the market: proximity to the forest, air quality, access to the future metro, safety, commercial and entertainment facilities.
Luxuria Domains Residence is the first project on the premium segment developed by Impact. The project, whose delivery is estimated for the end of 2020, is developed on a 22,500 square meter plot in the Domains – Exhibition area and will include 630 premium apartments and over 9,650 sqm of vegetation. This is the first residential compound located in the immediate vicinity of the future office floor of the Exhibition, where approximately 17,000 employees will be relocated this year. The area also has easy access to the capital’s major points of interest: Metro (5 minutes), shopping areas, parks, city center, airport, schools, hospitals. Moreover, the project has already received a renowned award, International Property Awards for unique architectural elements.
Impact is due to begin construction works for a new residential project in Constanta this year. Here, the company owns a land of almost 6 hectares, with easy access to the city center, the motorway and the resort of Mamaia. The residential complex is designed to accommodate 660 homes and has a market value estimated at EUR 56.5 million.