Support for the construction sector

Samruk-Kazyna Construction Joint Stock Company (former Real Estate Fund of Kazakhstan) is a developer company established on March 06, 2009, by the Government of the Republic of Kazakhstan in order to stabilize the situation in the real estate market, namely, solving the problems of shareholders and completing problematic objects. Initially, the company’s task was to acquire residential and non-residential premises in the facilities under construction and ensure effective management of this property. As a national operator, the company participated in the implementation of Affordable Housing 2020, Nurly Zher and a number of other state programs in eleven regions of the presence of the Fund group of companies.

In March 2019, the Government of the Republic of Kazakhstan transferred 100% of the company’s shares to the Sole Shareholder - Samruk-Kazyna JSC. According to the updated Development Strategy, the real estate company is moving from the functions of the operator of state programs to rendering services in the field of construction and real estate management for the Fund group of companies.

Key performance results

“Comfortable school”

The goal of the National Project is to eliminate emergency schools, three–shift training and a shortage of student places in secondary education organizations. Sources of financing: KZT646,535,206 thousand is provided at the expense of the National Fund, KZT1,960,060,849 thousand - at the expense of the Republican Budget.

The total amount of funding required for the implementation of the National Project is KZT2,606,596,055 thousand. The total number of facilities put into operation during the implementation of the National Project under the first mechanism is 401 schools in 20 regions of the Republic of Kazakhstan.

Design capacities of secondary education facilities are as follows: 300, 600, 900, 1,200, 1,500, 2000, 2,500 students. The repayment of funds allocated to the Company for the implementation of the national project will be carried out by transferring secondary education facilities to the ownership of local executive bodies, simultaneously with the commissioning of these facilities

Since 2023, Samruk-Kazyna Construction JSC is appointed the Directorate for the target construction of secondary education facilities.  The company manages the project in accordance with the Rules for Rendering Engineering Services in the Field of Architectural, Urban Planning and Construction Activities, while being endowed with the function of the customer.

Financial results

At the end of 2022, net Income of the company amounted to KZT5,284 million with a planned net income for KZT8178.6 million. The high volatility of the Russian ruble had a negative impact on the financial result: the company recognized a loss from the currency difference on a previously issued ruble loan repaid in the first decade of September (at the exchange rate as of the maturity date for KZT7.84/RUB1), and on the ruble bond loan (at the exchange rate as of the end of the reporting period for KZT6.43/RUB1).

Support for the construction industry

As of December 31, 2022, residential construction investment agreements were concluded for 11 objects in Astana, Almaty, Atyrau, Aktobe, Konayev and Ust-Kamenogorsk; the company’s real estate pool for which is 362.98 thousand m², the total cost of projects amounts to KZT129 billion, including the volume of the company’s own investments – KZT55.3 billion. The Company’s share in projects averages 60%. Of these, three projects were commissioned in 2022 and three projects were partially commissioned, the total share of the Company’s commissioned real estate amounted to 150.7 thousand square meters, 99.1 thousand square meters were sold. These projects are financed at the expense of own funds and borrowing on market conditions.

One of the tasks assigned to Samruk-Kazyna Construction JSC is participation in the program of plants for the production of import-substituting construction materials. In 2022, the company signed an investment agreement for the construction of a plant for the production of roofing and cladding materials in Astana. The project cost is KZT2.6 billion.

The project provides for the production of up to 630,000 units of metal roofing elements per year and up to 2,200,000 units of cladding materials per year.

With the start of plant operation, about 70 jobs will be created. More than 90 people will be involved in the construction process.

On August 19, 2022, on the territory of the Astana – New City special economic zone, a capsule was laid at the construction site of the plant for the production of roofing and cladding materials in Astana.

Improving the operational efficiency

In 2022, the company started automating the rental payment management system with completion in 2023.

As part of the automation of internal corporate business processes for personnel records management, the electronic platform SimBASE has been introduced.

Plans for 2023

In 2023, the Company plans to complete the construction of 5 residential complexes in Astana, Almaty, Aktobe, Konayev. Among the priorities is the completion of the construction of the plant for the production of roofing and cladding materials in Astana; the beginning of the construction of schools in 20 regions as part of the Comfortable School pilot national project.