Real estate developer Impact targets an annual turnover of 50 mln euro by 2018

Impact Developer & Contractor, one of the first players in the real estate market in Romania, anticipates an important advance within the coming years in terms of revenue which aims to grow up to 50 million euro annually, by 2018.

The company controlled by businessman Gheorghe Iaciu – the main shareholder - has presented its development strategy for the next four years when projects an expansion of the residential buildings and homesite portfolio. Besides the new Greenfield 2 project which will be initiated in May this year with the construction of a 10.400 m2 residential complex corroborated by another one of 6400 m2 which will be set up in July, this year, Impact also focuses on selling already finalized houses, as well as part of its residential lot.

Based on this strategy, the real estate company anticipates its revenue will improve on all the said segments. By 2016, Impact expects over 11 million euro to be brought from the sale of the apartments ready to purchase, at the same time, estimating a turnover exceeding 41 million euro within 2014 and 2018, once the 475.000 m2 residential lot on market will be sold.

According to the company’s strategy for the next period, there is an interest in developing new residential complexes within the Greenfield project as from 2015 so as to increase its portfolio up to 128.400 m2 living area by 2018. Thus, Impact’s forecast on new buildings sales revenue indicates a consistent increase from 3 million euro estimated for 2014, to 13.6 million in 2016, followed by sales worth over 17.5 million euro per year starting 2016.

Additionally, Impact plans to acquire new residential lots destined to develop other real estate projects totaling a living area of 80.000 m2 which will bring some 70 million euro to the company’s turnover.

Overall, considering this extensive strategy which will be implemented starting this year, a first positive impact should be visible next year, Impact foreseeing then a turnover of 26 million euro – three times higher compared with 2013. Given these results, further estimations show that its turnover will double in 2016, so as to eventually lay at 50 million euro per year by 2018.

Impact Developer & Contractor was founded in 1991 by public subscription and is listed at the Bucharest Stock Exchange since 1996. The company has developed so far 16 residential compounds in five cities across Romania, its real estate portfolio being completed with 25.000 m2 of office and retail space.