Hals-Development Doubles Its Income from Sales and Rent in 2017
Hals-Development announces its preliminary results for the first nine months of 2017. The company’s total income from sales and rent of real estate amounted to about 24.5 billion rubles, nearly doubling the result of the previous year. Income from sales of residential and commercial real estate is at 21.2 billion rubles, income from rent is at 3.3 billion rubles.
“Hals-Development has a strong managerial team and a portfolio of unique residential and commercial projects that attract a great interest of investors. The company’s financial strategy designed to withstand the global challenges of the market, stable sales and the support from our shareholder VTB Group will ensure successful completion of all the current projects of Hals-Development and sustainable development of the company in the long run. Before the end of the year we expect to announce our new project sites and commission three projects with a total area of about 300,000 sq m – the second stage of the Nasledie Residential Quarter, the elite residential complex Teatralny Dom, the office buildings in the IQ-Quarter, and the terminal complex in Moscow-City,” comments Sergey Kalinin, President of Hals-Development.
In the first nine months of 2017, Hals-Development has generated over 9 billion rubles in income from sales of commercial real estate, tripling the result of the previous year. Earlier this year Hals-Development signed a deal to sell the LETO Shopping and Entertainment Complex (Saint Petersburg) with a total area of 116,000 sq m to a buyer consortium supported by MALLTECH, and a deal to sell office space in the B Tower of the SkyLight Business Center on Leningradsky Avenue to Locko-Bank AO.
Sales of business-class apartments accounted for 33% in the overall revenue structure, sales of elite property contributed about 20%. The highest sales in the high-end segment have been registered in the Peking Gardens apartment complex and the Iskra-Park Urban Quarter. The choice of the new neoclassical style architectural concept for Iskra-Park and the high rate of construction have boosted sales of apartment suites four times.
The aggregate income from sales of business-class residential property amounted to about 4 billion rubles. The highest sales have been registered in the Dostoyanie Residential Quarter, which accounted for about 18% of the total income. The residential complex of three towers – Nauka, Kultura and Iskusstvo, will be commissioned in late 2018.
In Q3 of 2017, Hals-Development put the third stage of the Nasledie Residential Complex on the market. As of today, about 25% of apartments in the complex have been sold. The second stage (345 apartments) will be commissioned before the end of 2017.
About the Company:
PJSC Hals-Development is a fast-growing real estate development company that specializes in residential and commercial real estate and controls all stages of a project life cycle, from concept development to further management of finished facilities. The company’s principle shareholder is VTB Bank.
The company is one of the five largest real estate developers in Moscow. The total area of the development projects implemented by Hals-Development is 1.6 million sq m. In 2016 and 2017, the company commissioned seven real estate projects with a total area of about 600,000 sq m: 1st and 2nd stages of the business-class Nasledie Residential Complex, elite Wine House Quarter, Peking Gardens Apartment Complex, IQ-Quarter (International Business Center Moscow-City), and elite Teatralny Dom Quarter.
The total area of real estate under construction in the company’s portfolio is over 800,000 sq m. Four projects are currently under construction: 3rd stage of the business-class Nasledie Complex, multifunctional Iskra-Park Complex, Dostoyanie Residential Complex, and Nevskaya Ratusha project in Saint Petersburg.
The company’s portfolio includes currently operating commercial real estate: SkyLight Business Center, Danilovsky Fort Business Center, Peking Hotel, shopping and entertainment complex Children’s Dreamhouse Mall on Lubyanka, Kamelia resort complex in Sochi, and other projects in Moscow and other regions of Russia.