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 commercial and residential real estate and controls all stages of a project life cycle, from concept development to further management of finished facilities. The company’s principle shareholders are VTB Bank and the Bank of Moscow.
The company is one of the 5 largest real estate developers in Moscow. The total area of the development projects implemented by Hals-Development is 1.6 million sq m. In 2014 and 2015, the company made use of over 200,000 sq m for its projects: the Children’s Dreamhouse Mall on Lubyanka, the Kamelia resort complex in Sochi, Literator Elite Residential Quarter and the loft apartment complex in the elite Wine House Quarter in Moscow.
The company’s portfolio includes: the LETO Shopping and Entertainment Complex in Saint Petersburg, the SkyLight Business Center, the Danilovsky Fort business center, the Peking Hotel, the development of the Peking Gardens residential quarters, Wine House, Teatralny Dom, Nasledie, Iskra-Park, the development of the 11th area of the International Business Center Moscow-City (IQ-Quarter), and other projects in Moscow and other regions of Russia.
The company’s income from sales and rent of real estate in 2014 and 2015 was about 48 billion rubles.