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 Rostov-on-Don businesses). INTECO Group contract sales in value terms grew by 19% year-on-year. In 2021, Moscow portfolio of existing and prospective projects increased by 76% vs 2020.

Project highlights
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, thousand sqmIncluding contracts signed during the calendar year and registered in the following year. 168.5 194.7 166.8 -14
Contract sales in Moscow 76.7 89.5Excluding the first stage of Sadovye Kvartaly. 94.7 6
Contract sales in Rostov-on-Don 91.8 105.3Excluding fit-out. 72.1 -31
Contract sales, RUB millionIncluding contracts signed during the calendar year and registered in the following year. 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.

Contract sales (in value terms) by project in 2021, %
Average selling price in key projects, RUB thousand per sqm

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.

Projects acquired in 2021
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