Ljubljana, 12 December 2017 –2017 was a year of remarkable achievements in BAMC's real estate asset management operations. BAMC is closing the year with 95 business real estate projects sold for a total of 28 million EUR, and 64 residential projects sold for a total of 75.7 million EUR.
Sales and management of BAMC's real estate
As of today, the BAMC real estate portfolio, a result of proactive real estate management operations, consists of 240 proprietary real estate units worth a total of 206 million EUR, spread across 4 countries. The majority of these (42%) consists of land plots. BAMC's real estate portfolio also includes 1,066 properties pledged as collateral, worth a total of 721 million EUR, spread across 7 countries (as of 11 December 2017). The majority of these (35%) consists of industrial properties.
"With the growing portfolio of proprietary real estate, real estate sales have been on a positive trend over the past three years (2015-2017). In 2015, total sales amounted to 2.33 million EUR, in 2016 the number increased to 1118.56 million EUR, and in 2017 (as of 11 December 2017) total sales have reached as high as 103.9 million EUR (excluding relevant taxes)," said Janez Škrubej, Executive Director responsible for real estate asset management operations.
At the end of 2017, 63 residential real estate projects from BAMC's portfolio have been sold for a total of 75.7 million EUR. BAMC still owns 98 real estate projects worth a total of 99.1 million EUR. Standing out among the successful projects from the residential real estate portfolio are Celovški dvori (Ljubljana) and the commercial/residential complex Harmony in Sofia (Bolgaria):
- The Celovški dvori project includes 226 apartments, 23 business premises and 529 parking spaces owned by BAMC. Based on the transfer value of the real estate taken over from the insolvency proceedings, BAMC was able to generate at least 12 million EUR of added value and contributed to raising the residential complex's reputation. As of the present time, revenue generated from the sale of this project is approximately 39 million EUR.
- The Harmony Sofia Project includes 87 apartment units, 7 commercial premises and 84 parking spaces in the garage. Based on the transfer value of the real estate taken over from the insolvency proceedings, BAMC was able to generate at least 1 million EUR of added value.
Standing out among some of BAMC's larger current residential projects are Nokturno (215 apartments, 2 business premises, 438 underground parking spaces; 152 apartments already sold so far) and ES Gorica, Koper (164 apartments, 29 commercial premises, 417 underground parking spaces; sale expected to begin in May 2018).
At the end of 2017, 95 business premises from BAMC's portfolio have been sold for a total of 28 million EUR. BAMC still owns 142 real estate projects/cases worth a total of 106.9 million EUR. In the segment of industrial property sales, a particular achievement is the successful sale of the Maribor Automotive Factory, Koper Inde project, Kiv Vransko industrial complex, large-scale land plots zoned for business zones, and large business buildings in Ljubljana, Maribor and Ajdovščina.
Active real estate management
These results come as a result of BAMC's active real estate management focus and use of different methods to increase property values, depending on the segment and market potential of each property. Key measures for generating added value include resolving legal and technical deficiencies, investment-focused real estate development and city planning processes, transparent sale processes with targeted marketing, and proactive takeover of prospective properties from insolvency proceedings. BAMC hopes to create the most added value through joint venture projects, where it will strive to create additional returns for the taxpayers while taking on manageable risk.
"A particular challenge and an example of successful generation of added value can be seen in the properties which we successfully revived or changed their original purpose. Besides returning funds to the national budget, this also allowed us to extend the functionality and societal role of these properties in the local environment. One example worth mentioning is the industrial facility Inde in Koper or the KLI Logatec industrial complex,« adds Andrej Lazar, Director of Real-Estate Management at BAMC.
Besides BAMC's executive management, the 206 million EUR's worth of proprietary and 721 million EUR's worth of pledged real estate portfolio is managed by 16 real estate case managers, assisted by 11 back-office personnel. The real estate team includes 15 licensed real estate agents and 6 licensed real estate appraisers.