About ALACOR
ALACOR a fully transparent, Kiev-based property investor and developer, founded 3 years ago and managed according to Western standards and reporting in IFRS
Alacor is the company with two shareholders. Capital provided from the shareholders without a bank debt at current stage.
We position ourselves as a Local Partner creating Institutional quality property for international investors/buyers coming to the market.
Currently we are planning to bring to the Management Board two international experienced professionals as Non-Executive Directors to ensure the best management, supervision and decision taking standards
Alacor is an independent private structure of the big business Holding with the turnover in 2008 of 2,5 billion USD which controls and manage around 100 enterprises with total of 3000 employees. Covering Petrol Station chain and whole sale of fuel products, wholesale of petrochemical products, production of agricultural products, refrigerating warehouse, Medical insurance company and 3 ophthalmologic clinics.
All previous businesses were successful:
• Tolling schemes, trading with raw materials, steel and oil products with major Steel Mills in Ukraine, resulting in our 25% ownership of the largest Steel producer (sold to the current shareholders at the peak of the market)
• Developing one of Ukraine largest Petrol Station chains with over 120 stations and selling 28% to an institutional investment fund by creating a fully institutional business structure in a complicated local business sector.
• Development of a Steel Processing Mill (added value products made from raw steel plate) with a sales network to the EU and USA with output 100,000 tons per year, subsequently sold to a strategic local buyer
Our success in these ventures over more ten years allowed us to invest in our latest venture:
“Alacor Property Investments & Development”
• Our track record of successful value creation in real estate includes:
• Major development project structured as an JV and forward-sale
with IMMOEAST
• Shopping center in Crimea (18,000sqm GBA) completed
and sold at pre-crisis pricing in 2008 with strong profit
• ALACOR’s current portfolio includes 6 well located in Kiev, institutional quality and potentially highly profitable projects, with a current market value of $354Mln
• We don’t have a bank debt, allow us to be flexible, proactive and design a new strategy to meet a challenging time on the market
We have a good located pipeline of different projects in Kiev only and looking to expand portfolio by taking excellent and exceptional price opportunities for the best quality projects
Investment & Development Strategy:
Quick reversal in the market forced us to change our Investment and Exit strategy and horizon from the short-term investor selling after completion to the long-term horizon benefiting from the income and potential growth.
Our projects were not adversely affected by the crisis as we stopped construction and we invested comparatively less than most of our competitors at the highest market costs and now are well positioned to regain significant value
To respond to the absence of local bank financing we entered into a close cooperation with the largest local construction company and design institute for investments in kind (works) in our projects, which cover up to 40% of total investment cost, making possible to continue development & construction and dramatically improving project cash flow over our competitors, which gives us extremely strong competitive position in the market
We see significant up side positively impacting the value of our existing portfolio by the beginning of 2010
ALACOR has a clear strategic vision of growth capitalising on its current platform to seize opportunities with a focus on Kiev and entered the market for new acquisitions to enlarge significantly the portfolio within a very short period of time
The current market situation in Ukraine in our view is very positive, because corrected the market, took out our competitors, especially strong international and hunters with easy, oversupplied money, unreal valuations and unhealthy pipeline of projects.
We see a lot of opportunities to buy excellent projects and land plots at very attractive prices. In autumn of 2008 we bought 3 projects. Rents have come down, but where they should be over the long-term trends they are coming back to reality, which is very healthy thing for the market and in our models we used sustainable rents any way.
In our view the property is stable, real source of income at any time of the market, also in the bad times, compare to other collapsed business sectors, especially producing industries.
The quick analyses showing that property business in Ukraine is still profitable even better than in CEE in the best times, but today has a much greater potential to grow.