2020 Annual Report

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2020 Annual Report REPORT Board of Directors 2020 1 Board of Directors Report for the year 2020 – IMPACT Group Content 03 2020 Highlights 05 IMPACT Group, overview 06 Projects portfolio 12 Activity of IMPACT Group in 2020 17 Residential real estate market 19 Strategy highlights 21 Financial results 23 Board of Directors and Executive Management 25 Main risks and uncertainties 26 Corporate Governance 28 IMPACT Developer & Contractor on the capital market 29 Reconciliation of IFRS Net Assets vs. EPRA 31 Annexes 31 Implementation of the Corporate Governance Code 38 Other information 39 IMPACT Group www.impactsa.ro 2 Board of Directors Report for the year 2020 – IMPACT Group 2020 HIGHLIGHTS Operational Financial IFRS NAV • 368 apartments sold (30,864 sqm built area without common spaces), of which 205 (17,799 sqm) in GREENFIELD Baneasa Residence (“GREENFIELD”) and 163 (13,065 sqm) in LUXURIA 641 mLEI Domenii Residence (“LUXURIA”) + 57 mLEI (2019: 584 mLEI) • 199 pre-sale agreements and reservations on 31 December 2020 (16,414 sqm built area without common spaces) are expected to be translated into sales in H1 2021 – 99 apartments (50%), H2 EPRA NRV 2021 – 41 apartments (20%) and 2022 – 59 apartments (30%) • Completion of the construction works of the first two phases of the LUXURIA project, with 500 apartments (45,028 sqm built 917 mLEI area of apartments without common spaces, 51,786 sqm total built area of apartments) + 99 mLEI (2019: 818 mLEI) • Obtaining the building permit for the fourth development phase of GREENFIELD (Panoramic Assembly, Teilor Assembly, Sales GREENFIELD PLAZA); GREENFIELD PLAZA includes: a strip mall, an impressive wellness area equipped with gyms, SPAs, tennis court, semi-olympic pool, indoor pool, outdoor pool and its own 204 mLEI office building that will become the headquarters IMPACT Developer & Contractor (“IMPACT”) + 47 mLEI (2019: 157 mLEI) • Identifying solutions for framing the next stages of the GREENFIELD housing concept in the green buildings category Pre-sales and reservations for • Continuing the construction works for the third phase of apartments as at 31 Dec 2020 LUXURIA, 130 apartments, estimated to be completed in the first half of 2021 118 mLEI - 28 mLEI (2019: 146 mLEI) www.impactsa.ro 3 Board of Directors Report for the year 2020 – IMPACT Group 2020 HIGHLIGHTS Operational • Continuing the construction works for the 18 villas part of the BOREAL PLUS project envisaged to be completed in the first half of 2021, for which the building permit was obtained in December 2019 • Obtaining the building permit for 341 apartments out of the 676 apartments that will be brought on the market in Constanta, through the BOREAL PLUS residential project, designed to be developed in 4 consecutive phases • Starting the construction works for the Panoramic Assembly from GREENFIELD (138 apartments), for the first blocks of the BOREAL PLUS project (209 apartments) and for GREENFIELD PLAZA • Acquisition of a plot of land of 24,333 sqm in Iasi for the development of a GREENFIELD housing concept. The land is located in Copou in the area of the Botanical Garden and has a PUZ • The PUZ for the second district of Bucharest, where IMPACT owns a land of 2.6 ha located in Barbu Vacarescu Blvd., was approved • The PUZ and PUG for the sixth district of Bucharest, where IMPACT owns a land of 25.9 ha located in Timisoara - Prelungirea Ghencea Blvd, were approved • Locations / plots of land in Bucharest and in other cities (Iasi, Constanta) throughout the country for future developments have been identified • The financing solutions considered for the implementation of projects are the issuance of bonds listed on the main market of BSE, with private placement, bank financing and the issuance of new shares • The issue of Private Placement bonds of 6.58 mEUR with a fixed interest rate of 6.4% p.a., payable semi-annually. The bonds were issued by IMPACT on 24 December 2020, with a maturity of 6 years and will be listed on the Regulated Market of BVB in the first half of 2021 • IMPACT donated a plot of land with an area of 9,620 sqm with a project for the construction of a public school and kindergarten in GREENFIELD, land with a value of 5.9 mLEI. The school and kindergarten are to be built by the City Hall of the 1st district • IMPACT donated a plot of land with an area of 1,864 sqm for the construction of a church in GREENFIELD, land with a value of 1.14 mLEI www.impactsa.ro 4 Board of Directors Report for the year 2020 – IMPACT Group IMPACT GROUP, OVERVIEW ▪ 30 years of leadership, innovation and excellence in real estate ▪ Since its establishment in 1991, IMPACT Developer & Contractor ranked on the Romanian real estate market as an innovative company ▪ IMPACT Developer & Contractor is the first real estate developer after the communist era, established with 100% Romanian capital ▪ In 1996 IMPACT Developer & Contractor was listed on the Bucharest Stock Exchange (“BSE”), whereby Impact Developer & Contractor has become the first representative of the real estate development and construction sector listed on the Stock Exchange ▪ In 2006 the shares of IMPACT Developer & Contractor were promoted to Category I of the Stock Exchange and in 2015 to the Premium category Expansion 16 + 4,000 at national residential dwellings level compound built +10,000 500,000 400 mEUR inhabitants sqm built Investments exceeding www.impactsa.ro 5 Board of Directors Report for the year 2020 – IMPACT Group PROJECTS PORTFOLIO Ongoing projects RESIDENTIAL COMPOUND GREENFIELD BANEASA RESIDENCE Unique location Easy access District 1, framed on two sides by 900 ha of woodland: DN1 National Road and the Ring Road are just a few Baneasa Forest and Tunari Forest minutes away. The Underground stations Washington and Paris on Line 6 connecting the current network to Otopeni Airport shall be located near GREENFIELD Facilities Current: public transport, private school, parks and playgrounds, restaurant, medical centre and Development in stages supermarket, RATB 3 Completed: GREENFIELD Phase 1, GREENFIELD Phase 2 Future: Community Center with public school, public (Salcamilor Assembly), GREENFIELD Phase 3 (Platanilor kindergarten, ride-sharing options, Greenfield Plaza Assembly) including SPA, pool, sports courts, restaurant, supermarket, bank 2 Future: GREENFIELD Phase 4 (Panoramic Assembly and Teilor Assembly), GREENFIELD Phase 5 (Castanilor Assembly) www.impactsa.ro 6 Board of Directors Report for the year 2020 – IMPACT Group PROJECTS PORTFOLIO Ongoing projects GREENFIELD Phase 2 GREENFIELD Phase 1 (Salcamilor Assembly) Development 2007 - 2010 Development 2014 - 2016 No. of apartments & 680 No. of apartments 924 houses No. of parking spots 1,044 No. of parking spots 680 Gross area (sqm) 85,076 Gross area (sqm) 59,602 % Sold 99.9% % Sold 99.3% GREENFIELD Phase 3 GREENFIELD Phase 4 & (Platanilor Assembly) GREENFIELD Phase 5 Development 2016 - 2019 Development 2020 - 2028 No. of apartments 944 No. of apartments 4,356 No. of parking spots 1,162 No. of parking spots 5,227 Gross area (sqm) 89,950 Gross area (sqm) 401,146 % Sold* 98.2% Project value (mEUR) 460.5 * Including 18 pre-sale agreements and reservations as at 31 Dec 2020 2,548 2,524 Completed dwellings GREENFIELD Sold dwellings first 3 phases Including the 18 pre-sale completed agreements and reservations as at 31 Dec 2020 www.impactsa.ro 7 Board of Directors Report for the year 2020 – IMPACT Group PROJECTS PORTFOLIO Ongoing projects GREENFIELD COMMUNITY CENTER GREENFIEL PUBLIC D PLAZA KINDERGARTEN PUBLIC SCHOOL IMPACT OFFICE BUILDING STB TERMINAL Community area dedicated to GREENFIELD Baneasa Residence, but with high potential to become a regular FUNCTII DESCRIERE TEREN stopover for outsiders, thanks to strong anchors coming from SPA, supermarket, restaurants and services GREENFIELD Office, Commercial, 21,496 sqm PLAZA Services, SPA At launch will serve 10,000 permanent residents PUBLIC 800 pupils capacity 6,000 sqm (increasing to 17,000 by 2028) as well as over 1,000 SCHOOL regular visitors mostly from Otopeni-Corbeanca area PUBLIC 150 children 3,200 sqm Benefits from demographics with high spending KINDERGARTEN capacity potential (average age of adults 38 years with medium to high average income) STB TERMINAL End line of Bucharest 1,375 sqm public transport Long term contract with MEGA IMAGE, one of the network strongest food anchors, already secured SHUTTLE BUS Dedicated to the 250 sqm* STATION kindergarten and the school *Included in the land surface of GREENFIELD PLAZA www.impactsa.ro 8 Board of Directors Report for the year 2020 – IMPACT Group PROJECTS PORTFOLIO Ongoing projects GREENFIELD PLAZA New urban facilities Facilities GREENFIELD PLAZA is a commercial and leisure center, A complete mall experience, with varied services to a complementary project of the residential complex answer as many needs as possible GREENFIELD Baneasa Residence, which is addressed to ▪ Mega Image supermarket both residents and the general public ▪ Restaurant, bakery ▪ Playground Smart living ▪ Pharmacy ▪ Bank, currency exchange Having close to home all the necessary facilities, residents will reduce the time spent in traffic to ▪ Travel agency, parcel delivery center different destinations, as IMAPCT supports pollution ▪ Beauty salon, hairdressing salon reduction solutions and the GREENFIELD direction of ▪ Cleaning environmental responsibility ▪ SPA area Visitors from outside will be attracted by GREENFIELD ▪ Tennis court PLAZA due to its strategic positioning ▪ Swimming pools Wellbeing GREENFIELD PLAZA will host an expanded space
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