2020 outcomes: "We have sold about 20 thousand square meters of residential real estate"

- Name three things, events or facts that you associate with the year of 2020 coming to an end.

- The world will not be the same, the pandemic and total digitalization in all aspects of life.

- If you decide to write a book or make a film about the events of the outgoing year, which genre will you choose? Will it be a comedy, romance, thriller, fantasy or something else?

- If I decided to write a book, it would probably be in the genre of tragicomedy.

- Name three unique features that distinguish Edelburg Development from other national developers.

- I don't like to compare our company with others, because I believe that a lot of interesting and high-quality facilities are being built in Kyiv by different market players. Edelburg Development is a reliable company with a strong team of professionals. We are implementing new quality standards for residential and commercial real estate.

- How do you choose locations for your residential complexes?

- We are a full-cycle development company. Our task is to design, build, implement and develop the project as a whole. If there is a proposal for the development of a particular land plot, we explore the location, its prospects and determine what is best to build on it.

- How much has the average price of a square meter of housing from Edelburg Development increased in 2020?

- On average, the price rise for business class residential complexes in the capital amounts to $ 350-450, our price is tied to foreign currency. At the launch of sales, the cost of a square meter in "Wellspring" was UAH 14 000, now in the new phase of the project - more than UAH 21 000.

- How many square meters of housing did you sell in 2020?

- We have sold about 20 thousand square meters of residential real estate. These are 267 apartments in our facilities under construction: "Edelweiss House", "Podol Grad Vintage", "Edeldorf" and "Wellspring".

- What are your predictions for 2021 regarding the cost per square meter in your newly-constructed buildings, depending on the class and degree of readiness of the facility?

- The higher the stage of readiness of the facility under construction, the more expensive the cost per square meter will be. The expected increase in the "square meter" is embedded in the financial model of each of our projects.

- How did you manage to overcome the consequences of the quarantine introduced in the spring of 2020?

- Spring lockdown hit absolutely all industries and spheres of life, but we, like most players in the real estate market, managed to struggle it. Every effort was made to organize work at construction sites and work did not interrupt at any of our facilities. This was a crucial moment for us. Naturally, we experienced a "drop" in sales, (basically, like everyone else), and an increase in summer due to the accumulated deferred demand. The specifics of sales of square meters in business class facilities are also different in that the buyer is not in a hurry, he has time to choose, to take a closer look. A comfort class dwelling buyer behaves in a bit different manner.

- If your company is offered to develop a land plot in any suburb of Kiev, which direction/location will you choose?

- I think that we will not stay limited to "Wellspring" in Vyshneve, there are some offers. And Vyshhorod direction would be interesting – beautiful nature, the Dnipro, a forest, there are prospects for development.

- In spring of the outgoing year, President of Ukraine Volodymyr Zelenskyi announced a reduction in mortgage rates to 10%. Some banks have actually reduced them, though not so significantly. Have you noticed an increase in the number of mortgagees in this regard?

- To be honest, it can hardly be called accessible and widespread. In my opinion, mortgages are more about the secondary than the primary real estate market. The interest rate is high, the down payment is 30-40% of the apartment's cost, and starting from the second year the loan rate is variable – 15-17% on average. Developers provide the buyer with unique offers on installments for a long period of 3 to 7 years without increasing the cost and interest rate growth, with a minimum down payment. It is much more convenient and cost-effective for the customer than taking a loan from a bank. Judging from our experience, there were no transactions on the purchase of apartments on mortgage.

- This November, the head of the Institute of the General Plan of Kyiv City Serhiy Bronevitskyi has announced that in spring of 2021 Kyiv will have a new general plan. What do you think this will change in the development of the capital?

- The general plan and the zoning project are long-awaited documents for both Kyiv residents and developers. This is a kind of urban planning passport of the city, its identification, a code so to say. The city is changing its appearance due to the emergence of iconic objects, the emergence of new residential areas, and the task of all developers is to make it convenient for citizens and attractive for tourists. I would really like it to be so. But there are controversial points in the zoning project that will benefit unscrupulous developers.

- Your portfolio is equally divided between commercial and residential properties — five against five. Can you please tell what brings more profit: the construction of residential complexes or shopping and office centers?

- In fact, it is not quite correct to think so. The cost of construction is basically the same, and the market price per square meter of commercial real estate is higher compared to residential one. The development of the construction footprint depends directly on the designated purpose of the site, so it is important to build promising objects that will be in demand.

- In the last few years Kyiv features the trend of collaboration of developers. Are you considering creating a joint project and, if so, with whom?

- We have been cooperating with the "Perfect Group" Development Company for quite a long time. In 2018, the last building of the "Fifth Quarter" in the Podolskyi District was commissioned, which is the project we had implemented together. Now we are preparing for the launch of another joint project - "Seventh Quarter", all in the same area, next to "Retroville" shopping and entertainment center. Together with "RESA Development", we are entering the construction site of the "Q-smart" residential complex in the Desnianskyi District, where some of the apartments will be provided to the affected investors of "Elita-Center".

- Most of your facilities belong to the business segment. Are you planning to move to the next level and construct new buildings of premium class?

- Now we are constructing business class residential complexes at Pechersk and Podil, as it is first and foremost driven by the location. We also have two more projects for multifunctional complexes ready for launch: on Yevhen Konovalets Street and on Tsytadelna Street. Definitely, demand generates supply, but so far the objects at the above mentioned addresses are declared as a business class.

- What new development projects of Edelburg Development will be launched in 2021?

- Our company is growing, developing, differentiating. In 2021, we will continue to construct our residential and commercial facilities and commission them. I have already told you before about the launch of new projects and the company's plans. What I haven't mentioned is that we will launch the construction of a shopping and entertainment center with an area of 20 thousand square meters on Andrii Malyshko Street, a 5-minute walk from "Darnytsia" metro station, and another office center in the Dniprovskyi District.

Moreover, we have quite ambitious plans for the commercial real estate segment. This November we received a license from the "World Trade Center" international organization. We are opening up the potential for small and medium-sized businesses in the country to cooperate with companies from 330 cities in 90 countries. Our business center under construction on Voznesenskyi Descent will become a kind of hub for international companies, which will be offered a flexible business environment for smooth operation in our country, highly competitive business terms and conditions, as well as the opportunity to provide legal and consulting services.

11.01.2021