Operating review
Thanks to a carefully crafted development strategy and successful project implementation, the Company demonstrated robust operating results in 2021.
In 2021, the Company commissioned more than 280 thousand sqm of housing (including the Moscow and
| Metric | 2019 | 2020 | 2021 | 2021 vs 2020 change, % |
|---|---|---|---|---|
| Number of INTECO Group projects | 8 | 8 | 12 | 1.5x growth |
| Projects in Moscow | 5 | 5 | 9 | 1.8x growth |
| Projects in Rostov-on-Don | 3 | 3 | 3 | — |
| INTECO Group’s existing and prospective projects, thousand sqm | 1,480 | 1,345 | 1,738 | 29 |
| Moscow project portfolio | 660 | 662 | 1,167 | 76 |
| Rostov-on-Don project portfolio | 820 | 683 | 571 | -16 |
| INTECO Group’s contract sales, | 168.5 | 194.7 | 166.8 | -14 |
| Contract sales in Moscow | 76.7 | 94.7 | 6 | |
| Contract sales in Rostov-on-Don | 91.8 | 72.1 | -31 | |
| Contract sales, RUB | 22,884 | 33,943 | 40,210 | 19 |
| Contract sales in Moscow | 18,124 | 28,831 | 35,171 | 22 |
| Contract sales in Rostov-on-Don | 4,760 | 5,112 | 5,039 | -1 |
| Cash receipts (including escrow accounts), RUB million | 20,849 | 35,145 | 44,734 | 27 |
| Cash receipts in Moscow | 15,772 | 29,517 | 38,676 | 31 |
| Cash receipts in Rostov-on-Don | 5,077 | 5,628 | 6,058 | 8 |
Unlike in 2020, West Garden took over Westerdam in the reporting year with the largest share of contract sales in value terms (up by 11 p.p.). Westerdam came in second with its share in total contract sales dropping by 25 p.p. from 44% in 2020 as the majority of the project had been sold. The Sadovye Kvartaly project also saw its sales share decrease due to its upcoming completion.
In 2021, Rostov-on-Don projects accounted for 13% of contract sales in value terms while making up 43% in volume terms (see the table above). This is attributed to significantly lower prices per sqm in the Rostov real estate market.
Investment in construction and acquisition
In 2021, investments in construction and acquisition amounted to RUB 52.4 billion, including:
- RUB 28.1 billion — acquisition of new projects in the Moscow region (ONEST, Mnyovniki and Frunzenskaya Embankment, 30);
- RUB 24.3 billion — construction investments in Moscow and
Rostov-on-Don .
The 2022 investment projections for construction and acquisition exceed RUB 50 billion.
Project timeline
- The Company is developing three projects — the Sadovye Kvartaly housing estate, the Liners mixed-use apartment complex and the Balchug Residence elite-class apartment complex.
- Sadovye Kvartaly and Balchug Residence remain in the active phase, while sales in Liners are closed.
- Two new residential developments, Westerdam and West Garden, are redesigned, with housing units made ready and available for sale.
- The Company acquires Ilyinka, 3/8.
- A Pyatiy element building and three buildings of the Strany Mira project in
Rostov-on-Don totalling 65.3 thousand sqm are commissioned. - The Company obtains construction permits for two buildings under the Pyatiy element project in
Rostov-on-Don with the total area of 52.6 thousand sqm.
- Sadovye Kvartaly, Westerdam, West Garden and Ilyinka, 3/8 are in the active phase.
- The Company acquires a new project, Vrubelya, 4.
- Two buildings of the Pyatiy element project, three Leventsovka Park buildings and one Strany Mira building in
Rostov-on-Don totalling 137.5 thousand sqm are commissioned. - The Company obtains construction permits for four buildings under the Pyatiy element project in
Rostov-on-Don with the total area of 91 thousand sqm.
- The Company closes deals for three new projects — Frunzenskaya Embankment, 30, Mnyovniki and ONEST.
- Moscow projects Sadovye Kvartaly, Westerdam, West Garden, Vrubelya, 4 and Ilyinka, 3/8 are in the active phase.
- Three buildings of the Pyatiy element project and one Leventsovka Park building in Rostov-on-Don totalling 111.7 thousand sqm are commissioned.
- The Company obtains construction permits for seven buildings under the Pyatiy element project and the third Leventsovka Park building in
Rostov-on-Don with the total area of 160.3 thousand sqm.
New project acquisition
In February 2021, the Company acquired a 100% stake in the company owning the land plot at 11/9 Sergeya Makeeva St., Moscow, for RUB 7.2 billion paid in cash.
In August 2021, the Company acquired 100% stakes in the companies owning the land plots at 30 Frunzenskaya Embankment, Moscow, for RUB 17,8 billion paid in cash.
In October 2021, the Company acquired a 100% stake in the company owning the land plot at 1 Mnyovniki St., Moscow, for RUB 4,2 billion paid in cash.
| Project | Land, ha | Class | Flats, thousand sqm |
|---|---|---|---|
| Frunzenskaya Embankment, 30 | 4.41 | Elite | 51 |
| ONEST | 2.96 | Premium | 55.5 |
| Mnyovniki | 5.5 | Business | 117.9 |