The SU-155 Group has presented the results of its construction operations for 2013: overall construction volume was 1.65 million square meters; its current project portfolio increased by almost 1.5 million square meters of housing; construction rate increased by 39%.
Last year was the best year in the modern history of SU-155. Group results were especially significant when considered against the decrease in housing construction noted by several experts since the autumn of 2012.
The 20th anniversary of the Group was the most successful in the company’s recent history, and immediately set records in several key indicators.
Su-155 built 1.65 million square meters of economy housing and other properties in 2013, which was a record figure in the 20 year history of the Group and the best results among developers reporting by the beginning of 2014. The results of the last 12 months confirm not only the sector leadership of SU-155 but also their significant role in the development of the affordable housing market in Russia. Construction by the Group in 2013 increased by 15.3% compared to 2012, when they built 1.43 million square meters. Concentration on development of construction facilities and development of panel construction technology enabled the SU-155 Group to demonstrate that efficient management of resource-intensive business in the real estate sector of the economy is possible even under unfavourable economic and overall stagnant industrial conditions.
Su-155’s portfolio of projects under construction in the last year grew by almost 1.5 million square meters – six (!) major residential areas (over 100,000 square meters each) were initiated, while there were only two comparable new projects in 2012.
Here is the square meterage in the Moscow area and in the regions: Balashikha (300,000 square meters), Zvenigorod (200,000 square meters), Saint Petersburg (270,000 square meters), Kaliningrad (300,000 square meters) and Kostroma (180,000 square meters).
The current share of panel housing in the company’s project portfolio has reached 91% of the total volume; the rest is housing constructed using other technologies, and infrastructural and public buildings.
The explosive growth rate in construction of the Group in 2013 is well worth noting. A 39% increase in the speed of construction operations was a necessary condition for reaching planned figures for square meterage of housing during the reporting period (the planned figure, announced earlier, was about 1.7 million square meters). It was set at 773,676 units for 2013 (average units per month: 64,473) as opposed to 556,291 units in 2012 (avg/mo: 46,358). The situation was complicated by the fact that the housing market for economy housing since 2012 has been dominated by demand for small area and compact size flats. This factor is responsible for the 23.7% difference between growth in area constructed and the increase in intensity of construction itself.
Construction in the regions
SU-155 built 513,500 square meters in the Russian regions in 2013, almost 31% of the total volume of construction of the company. For 2013, this includes construction by the Group in Saint Petersburg: 194,300 square meters; in the Nizhny Novgorod region: 57,600 square meters.
The shift in the balance of actually constructed meterage in favour of the Moscow region is due to the investment projects launched there 1-3 years earlier, reaching their peak phase of development (including the Yuzhnoye Domodedovo housing complex). Major projects completed for the construction of housing for the military, undertaken under investment contracts with the RF Ministry of Defence and contracts with the Moscow mayor’s office also contributed to the Moscow results for the Group.
A new development in investment in regional development (see below) under the Group’s overall strategy will yield additional results measurable in meterage completed starting in 2014.
The company launched construction projects in the Siberian Federal District in 2013 - in Omsk, Novosibirsk and Krasnoyarsk – and it is these cities that will be key in the development of SU-155’s construction and industrial operations east of the Urals. Significant regional growth points have been identified in the Kaluga, Tula, Ryazan and Bryansk districts.
Investment in construction
42.9 billion roubles were invested in the construction of new housing complexes and implementation of already existing projects in 2013.
Furthermore, the SU-155 Group increased investments by 31% in the Russian regions: from 8.6 billion roubles in 2012 to 11.3 billion in 2013, although the largest share of capital investment went to Moscow and the Moscow district, as previously.
Investment in housing construction in Saint Petersburg, the Leningrad region and Kaliningrad exceeded 2.6 billion roubles, and in the Ivanovo, Yaroslavl, Vladimir and Kostroma districts was over 2.2 billion roubles altogether for 2013.
SU-155 capital investment in construction in the Nizhny Novgorod region was over 1.8 billion roubles; in the Tula region, 1.4 billion, in the Kaluga region, 1.1 billion, in the Tver region, a bit over 1 billion roubles. Investments in other regions where SU-155 operates were less than 1 billion roubles.
Almost 1.9 billion roubles were directed to construction of public and infrastructural units for 2013 – a growth of 18% over the previous year (2012 – 1.6 billion roubles). 14 kindergartens, four schools and three clinics built by the SU-155 Group were opened in five districts in European Russia. The modern housing built within a matter of months for the transfer of residents from damaged and condemned housing in the Moscow areas of Krasnoarmeysk, Balshikha and Pavlovsky Posad was unique based on the rate of construction, based on SU-155’s own records for public housing.