Transcript Presentation Kika Company sh.p.k.

KIKA Company
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It is a great pleasure to wellcome Austrian Investers in Albania and I would like to
express my companies and Albanians Constructors Assotiation thanks for Austrian
Embassy in Tirana organising this event
First of all I would like to say some words about my company.Even though the
difficulties in the construction sector Kika Construction has many 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.
Actually company is building 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.
KIKA Company
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From the other side during 2003-2007 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.
Kika Construction from 14.03.2008 was certified of the ISO 9001 – 2000
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 2005 and near 500 million in 2006 and 2007. 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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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 e 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.
ALBANIAN BUILDERS
ASSOTIATION
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Construction industry in Albania is organised in a big enterprises
organisation named in the first stage “Albanian Builders Assotiation” or
shortly ABA and now “Albanian Constructors Assotiation” because
infrastructure companies were join with house builders
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
For this year our company has the presidency of Tirana Region and vice
presidency of Albanian Assotation.
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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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) will
have again an economic growth 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
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Gross Domestic Production of Albania for the Year 2007 was
considered 8. 130 billion Euro tha means that Construction industry
in Albania have a turnover of about 800 milion Euro yearly.
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Albanian State Budget for the Year 2008 is 3 billion Euro while is
expexted to be 4 billion for the year 2009.
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.
In this year is foreseen to be 9.5 % of the GDP.
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.
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 construction sector. Infrastructure building financed by
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 2007 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.
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 and 2007 state financing in the
infrastructure had a growth of 100% 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 65 %.
Finance distribution
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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
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Transport infrastructure
Water supply and Telecomunication
Complex building in Industry sites
Other engeneer works
67
25
14
75
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, Vlora, Elbasan,Lezha.
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general volume of residential
construction(apartments + buildings) for the
years 2002,2003 and 2004 for Tirana, Durres
and other parts of Albania.
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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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
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.
 Durres port is foreseen form the EBRD abd World
Bank be the most potential port in the area of
Albania,Kosovo,macedonia and MonteNegro
Construction permissions
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The year 2008 was the key year to resolve the problems of
the construction permissions.
But the problems still remains because the number of
permissions given from municipalities is still to far under the
demand
According a report of the Bank of Albania during the three months
of the year 2008 selling of the apartments were 34 % higher
compared the same period of the last year.
According INSTAT sources during first three months of this year
municipalities have given about 300 permissions to construct,
from about 100 been given in the same period of the last year but
still to low compared with the year 2005.
The price for apartments even in the first 6 months of this year
has a tendency to increase but form july is established.
Some datas about main materials
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2.2 Some datas about main materials used in the construction sector.
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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,Albanian and other investors
And that is foreseen to reduce the imports of cement from Durres port in 1 000
000 ton in 2008 and 2009.
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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.
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 from 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 actually 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.
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.
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. Feek, managing director at Emerging Markets Understood, explaing why the
apartments in Tirana were such e great investment. “Interet 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,”
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.
Real Estates evaluation
The real estate investers in Albania say:
 “Tiranas high-specification real estate developement are just five
to ten minutes from the central business district and are situated
right next to Tirana’s lake
 They seems to be some of the most prestigious areas of the city.
 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.
Dear Sirs thank You very mutch for spenting your precious time.
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