Transcript ERW – Elektrotechnik GmbH

Real Estates evaluation
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Lets began with some evaluation about Albanian real estate situation:
“Our high-specification developement is just
five minutes from the central business district
and is situated right next to Tirana’s lake, one
of the most prestigious areas of the city.
Other very beautiful area and project is “Le Serre Design” in witch are
foreseen 4 stars hotel, cinema, wellness center etc.
With rental managment alredy in place, these
properties are set to perform in rental terms as
Well as capital growth”.
Dan Johanson,managing director of
“TheMoveChannel.com,” agreed that Albania was
on the rise, but urged investors to proceed with
caution
Estates, Countries, Companies
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Estates- Countries –Companies
1. Apartments in Super Borovets/Bulgaria –
Dream Resort Ltd
2. Apartments in Tirana – Emerging Markets
Understood
3. Apartments in Grade Del Arte-Argentina –
Mooveeithus
4. House ins seside of Turtle- Brasil-EQuit.com.
5. Apartments in Joinville- Brasil-E-Quit.com.
6. Canada Land sales- Canada – Landcorp
international.
7. Canada Del Sol –Spain – Oaklands
Worldwide
8. Romanian Land Sales- Romania-NSP Group.
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9. Bayswater – Britain- Quin Annes-Property
10- Apartments north to island- New Zeeland- Elite Property investments.
House market
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The month’s major surprise was, however the popularity of apartments in Albania
and its capital Tirana. With the majority of investor interest focused on the Eastern
Europian markets like Bulgaria, Romania and Slovakia, Albania is shaping up to
the dark horse of 2008 according the “TheMoveChanel.com.”
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Albania is having actually an increasing apartments selling form foreing investers
like investers from United Kingdoom, Irland, Germany and United states.
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Many US, UK ,German and Italian real esteate companies are having susses in
their activity in the country.
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Mr. Fleek, managing director at Emerging Markets Understood, explaing why the
apartments in Tirana were such e great investment. “Interest in our Albania
properties has hit an all-time hight. Investors are realising that albania in one of
the Europe’s last true property hotposts and offers some of the lowest property
prices in Europe along with some of the hightest capital returns,”
HOUSE MARKET
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HOUSE MARKET: Albania is second in the world
The eyes of internation real estate brokers turned to
Albania in January, after one new real estate
developement in the country ranked second best in
the world. Albania was on top of the list of 90 contries
in the world.TheMoveChannel.com, a brokerage
house in the United Kindom that specializies in selling
homes, apartments and other real estate workwide.
January’s ranking shows investors prefer riskier
countries that offer cheaper prices to the more
glamorous and expensive markets of the coutries like
Spain and France.
Steel
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Construction steel is used in Albania for residential building and
for infrastructure objects..
In the year 2003 steel imports were 341 000 ton plus internal
production of Elbasan steel factory of 96 000 ton(This factory now
is privatized form a Turkish industry called Curum) Engineering
needs for different profiles of steel in Albania is 235 000 ton. Re
export of the scrap steel from Albania outside is about 90 000
ton.. An increasing need for steel construction arrived in the last
figures for the year 2007: Internal consumption of Albania for
steel construction is 400 000 Tons. The majority of the production
of Elbasan factory is going to export in Kosovo and Macedonia.
The consumption foreseen for the year 2023 for steel
construction will be 1.1 million ton and the needs for imports will
be reduced in 586 000 ton.
Bricks and Tiles
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The production and the import of the bricks
and tiles is increased in the last years.
 With the full privatization of that industry the
country has 22 factories in full production but
the most sophisticated are EDILCENTRO
(Italian investment) in Tirana and VOLALBA(
Italian Investment in Lushnja. The annual
production is about 2.5 million of tons.
 The tiles will have the same development and
the tendency is the same.The market tiles in
the year 2023 will be 2.3 million of tons with a
foreseen import of 0.5 milion of tons.
Some datas about main materials
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2.2 Some datas about main materials used in the
construction sector..
After the boom in the construction sector the consume of
the cement is increased dramatically achieving 1 584 million ton
in 2003. The consume have been increased until 2008 and
according the previsions will be lower progressively with 5%
yearly until 2013 and then will 2% until 2023. In the year 2023 the
needs of the country for the cement will be 4 million yearly. To
respond to the internal demand Albania imports about 1.2 million
ton cement and 300 000 ton klinker. Imports are coming mainly
form Italia (44%), Greqia (33 %), and Turkie (22%) through the
ports of Durres (62%), Shengjin (21%), Vlora (11%) and
Sarandes (6%). On the other hand five big cement factories are in
construction mainly by Italian, Greek, Albanian and other
investors
And that is foreseen to reduce the imports of cement from Durres
port in 900 000 ton2009.
Construction permissions
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The year 2008 seems to have not resolve
the problems of the construction
permissions. According a report of the Bank
of Albania during the three months of the year
2008 permissions for the apartments were 34
% higher compared the same period of the last
year. According INSTAT sources during first 6
months of this year municipalities have given
mutch more less permissions to construct,
because of general election been held in 28
June 2009 year. The price for apartments
even this year have been stabilised.
The Tendencies
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As you see is obvious that residential building
tendency has the trend to be concentrated
more in Tirana and Durres region. These two
regions are for the moment the most
populated area of Albania. These two regions
are the most developed area like socially and
economy. Tirana is the country capital and the
Durres is the main port of Albania. For the
moment Durres is the most equipped and
attractive tourist area of Albania having 20 km
of Adriatic sand cost.
Regions Distribution
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In the label below we are presenting the
general volume of residential
construction(apartments + buildings) for the
years 2005 and 2006 and 2007 for Tirana,
Durres and other parts of Albania.
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No
Regions
Year 2005
Tirana 1 200(59%)
Durresi 433(21.3%)
Rest 400(20%)
Total 2 033
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Surface in 000/m2
2006
2007
850(37%)
650(33%)
450(20%)
350(18%)
1000
1000
2 300
2 000
2008
550(32%)
300(17.6%)
850
1 700
Regions distribution
No Regions Surface in 000/m2
 Year 2002
2003
2004
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Tirana 410(23.3%) 440(42.6%) 648 (56.2 %)
Durresi 733(41.6 %) 658(24%)
78 (6.8%)
Rest 618
1648
426
Total 1 761
2 746
1 152
Regions distribution
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As about regions distributions of the foreseen
finance in the construction industry is obvious
that the majority is concentrated in big cities
like Tirana, Durres (Durrazo), Elbasan .
 In the label below we are presenting the
general volume of residential
construction(apartments + buildings) for the
years 2002,2003 and 2004 for Tirana, Durres
and other parts of Albania.
Finance distribution
In the label below form INSTAT source
of information we are presenting
percentage of different main volumes
compared with total value in general.
 No Nomination
Percentage %
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1
2
3
4
Transport infrastructure
Water supply and Telecomunication
Complex building in Industry sites
Other engeneer works
67
25
14
75
Infrastructure
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From the year 2004 until 2005 state financing in the
infrastructure had a growth of 46 % compared with the
year 2003. Financed value form the state was 5.7
miliard leke from 3.9 miliard leke compared a year
ago.
For the year 2006,2007 and 2008 state financing in
the infrastructure had a growth of 200% compared
with the year 2005.
State participation in the construction sector is
concentrated mainly in transport infrastructure and
water supply lines. State financing in engineer building
has a value of 84.8 % of the total financing means
that state has financed in the construction sector
having a growth of 165 %.
Financing sources
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Other Financing source was a small percentage of rich people
specialy trade mans and a big percentage of the middle class
new born in the country. Another source was internal migration
form the rural and mounting areas to the urban areas.
Private Construction Sector was focused mainly in the residential
buildings following a big demand in apartments. Apartments
building has taken partially about 81.6 % of all financing means of
the building construction sector. Infrastructure for buildings
financed by private construction sector even having a growth of
1.8 time compared with the year 2003 had less importance in the
near past time ( 2.7 % of the private investments).
In total from 2003 until 2008 in Albania we have a tendency of
private investors to increase financing for infrastructure specially
in energy and industrial infrastructure and a shortage in
residential building.
Construction Industry is considered
like one the most dynamic sector
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Construction Industry is considered like one the most dynamic
sector of Albanian Economy. Thus if in the year 2003 the final
product acquired by construction industry was 9% of the Albanian
GDP with a real increasing of 11.3%, for 2004, achieving in 10%
of the Albanian GDP in the year 2007 and 12% in 2008.
In this year is foreseen to be 10 % of the GDP because of a lack
of state investments caused by general elections been held in
country.
A boom in construction industry has changed dramatically the
housing chart of Albanian people. The majority of the people has
the tendency to live in the area of Tirana, Durres, Vlora and
Saranda which are the most soft clime areas in the country.
Approximately 25% of the houses in the country was built in last
10 years. This boom in the construction sector was strongly
financed by Albanian emigrants living in Greece,Italy,Austria and
Germany.
Gross Domestic Production of
Albania
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Economy growth according Bank of Albania for the year 2007 was 6%
and the same was for the year 2006. The year 2008 according the Bank
of Albania and INSTAT (The most authoritative sources in Albania)
economic growth was again 6%.
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Construction industry sector has a partially weight in the GDP of the
country 11.1 % in the year 2006 meanwhile in the year 2007 this sector
was 10% of the Albanian GDP and 12% in the year 2008.
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Gross Domestic Production of Albania for the Year 2007 was
considered 8. 130 billion Euro and for the year 2008 was considered
8,617 billion Euro that means that Construction industry in Albania
had a turnover of about 1 billion Euro yearly.
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Albanian State Budget for the Year 2008 was 3 billion Euro while is
expexted to be 4 billion for the year 2009.
ACTUAL STATE OF ALBANIAN
CONSTRUCTION INDUSTRY
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ACTUAL STATE OF ALBANIAN CONSTRUCTION INDUSTRY
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2.1 Building Industry influence in the Albanian Economy
Following a very difficult communist regime Albanian market
economy began functioning after the march 1992 with the
communist regime finish.
The last time of this regime 1989 – 1992 was a real economic
crises with closure of all big industrial plants throughout the
country.
Another economic crackdown happened in the 1997 when
financial pyramid schemes where ruined following civil unrest.
After the year 1998 economic and political evolution has been
smooth and normal. In the years between 1998 and 2008 Albania
was developed vertically following a progressive transition with a
continuous GDP growth between 6 – 8% and an inflation rate
between 2 - 4%.
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ALBANIAN BUILDERS
ASSOTIATION
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Construction industry in Albania is organised in a big enterprises
organisation named “Albanian Builders Assotiation” or shortly
ABA
This Organisation has 550 enterprises members that means 40%
0f all albanian constructors companies or all of big and medium
constructors companies existing in Albania.
This organisation has his branches in all 12 albanian regions or
prefectures like we call in Albania.
Our organisation is obsserving member of the FIEC(Europian
Construction industry federation).
Our organisation has bilateral agreements with many Europian
similar organisations like German,Italian,Turkye,Croatia, Kosovo
etc
The chairman of the ABA is Mr.Luigj Aleksi and General
Executive Director is Mr.Maks Muci.
KIKA Company
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Actually in Albania exists many construction companies but Kika Construction is
ranked among the most well known. The peculiarity of this company is the status
of being one of the most important operators of the market the one achieved
during few working years. Based on a familiar background this company appears
as a growth of a rational idea of business in the recent year of 1939.
Kika’s family was known as one of the wealthier families in Tirana with
construction areas up to the year 2002 it cooperated with famous construction
companies only like an invester.
As a result of this experience the family transformed investing idea in a real
construction company which would be supported on two basic pillars:
The use of contemporary European technology and Europian standarts.
The application of legal and technical forms not only of the Albanian state law but
also to the European standards.
So searching for the quality Kika Construction made use of the new technology of
concrete pouring of metal moulds and ligneous blocks, as well as the Doka for
concrete works, Ardex complete inner workings – a technology still unknown for
Italy and Greece. For this, Kika Construction is one of the few Albanian
companies that with its own funds has trained its own employees for professional
qualifications in Austria(in Doka and in Ardex factories) facing and accurate
application of technology cards of these technologies.
KIKA Company
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From the other side during 2003-2008 Kika Construction handled an average
20,000 meters square completed construction a year, being on time, for the
exploitation license and mortgage of its objects.
For the moment Kika Construction is certified with ISO 9000 European certificate.
Its slogan is the quality and the correctness towards its clients. The relationship
with clients is based on the contract and the company leaders is not restricted
only in the inner working of the indoor dwelling, but extends in the system and the
use of green and relaxed public environments for the inhabitants. It’s an
appropriate ratio between the square and the building of 42% mass representing
so great projects in all constructed areas realized from Kika Construction. The
consumer demands have surpassed the construction offers.
This company is well reflected even by its financial-economic indices. Its dynamic
is really surprising since from 250 million leks of incomes in 2003 they are grown
in the level of 727 million in 2005and near 500 million in 2006 and 2007 and 2008.
Good results it exists in its efficiency of a profit norm provided during last year of
the company that achieved a profitability norm of 11-12%. The constant growth of
company activity increase the number of employees up to 107 employees at the
end of 2005 and 2006, 2007: Everyone has been employed due to the legal state
laws.
KIKA Company
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Even though the difficulties in the construction sector Kika Construction
has some other new projects cooperating with many outstanding
Austrian companies like DOKA, ARDEX, PIPELIFE, HL and other
Austrian companies achieving many Austrian construction standarts.
Like architecture the company has like a subcontractor a well known
Italian architecture studio.
Its strategy and the vision of Kika Construction’s leaders is for the activity
to be diversified dealing not only with the apartments construction but
also with other publics works as it is the plan of the construction of the
cinema.
Actually company is building 200 apartments and a 100 rooms four star
hotel in Tirana a cinema and some halth care center in a very beautiful
place in rruga “Komuna e Parisit” street in Tirana city.
In the near future the company has approved the first step in the Tirana
municipality urbanistic council to construct an olimpic pool.
The company is studing the possibility to partecipate in the ports and
roads construction in the country.
www.kikaconstruction.com
 [email protected]
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