Development department the driving force for future growth
The potential investment volume the Development department is working through is over CHF 2.0 billion. This gives it a key role in releasing future growth potential and it makes a major contribution to utilisation in the Realisation department. By means of competitions Allreal ensures that it develops high-quality architectural and town planning projects.
Realisation
The Realisation department completed a project volume of CHF 319.6 million in the year under review (2021: CHF 343.2 million). This represents a decline of 6.9 percent from the previous year. Earnings from realisation Projects & Development rose to CHF 27.2 million (2021: CHF 24.5 million).
The gross margin on executing projects for third parties was 11.0 percent, well ahead of the 9.1 percent seen last year. When carrying out work for third parties, Allreal deliberately restricts itself to projects where the risks are calculable, the contractual terms realistic and the prospect of profit intact. Company-produced assets capitalised as part of realising in-house projects came to CHF 8.7 million (2021: CHF 6.2 million).
Of the project volume completed, CHF 247.9 million or 77.6 percent was from third-party projects (2021: CHF 269.6 million / 78.6%). In-house projects for the company portfolio accounted for CHF 54.9 million or 17.2 percent (2021: CHF 40.2 million / 11.7%) and development projects for sale to third parties CHF 16.8 million or 5.3 percent (2021: CHF 33.4 million / 9.7%).
The secured order backlog as at the reporting date amounted to around CHF 611 million, equivalent to capacity utilisation for about two years.
