2015 was the most successful year ever for Kaamos Kinnisvara AS. The company gained first place in the newspaper Äripäev’s Real Estate Companies TOP 100, rising from the 17th place to first in one year.
The 3.9 times increase in operating profit resulted from a successful year in the commercial property sector with good results gained also in residential real estate development.
“In terms of asset class, real estate is not dissimilar to bonds. If relevant rates of return drop, asset prices go up and vice versa. In other words, commercial property is characterized by an inversely proportional relationship between rate of return and price”, Ivar Vahter, Management Board Member of Kaamos Kinnisvara, explains the formation of profit.
Globally, the yield rate of real estate sought by investors has dropped during the past years, bringing about an increase in the value of commercial real estate. As good accounting practice requires commercial real estate investments to be reflected in their fair value, one-off profit from revaluation of assets was accrued in 2015, contributing to a successful result for Kaamos Kinnisvara.
“We are convinced our success is based on long-standing experience and customer-driven professional work. I can’t deny that luck as well has played an important part on many occasions; however, good results mostly derive from just the right decisions,” Vahter comments.
Last year was exceedingly successful for Kaamos Kinnisvara also in residential real estate development. More than 150 apartments are currently under development in the Hõbemetsa residential district and the Rohu quarter. Development of a couple of apartment buildings will additionally commence in the next few months, boosting the number of handled apartments to 200 by the end of the year.
“Customers have heartily embraced the Hõbemetsa residential district and demand continues to be high. Development of the Rohu quarter in the vicinity of Telliskivi Creative City has gone really well”, says Vahter. “We sold the 33 phase one apartments before construction of the buildings was finished. Phase two is set to be completed in June 2017; more than half of the apartments are booked already.”
Source: A. Oja (2016). Võidu taga head suhted üürnikega (Victory is based on good lessee relations). Äripäev Kinnisvara (Äripäev Real Estate); November 11