Dragon Capital lost 200,000 square meters of real estate and $65 million due to the war

The real estate portfolio of the investment company Dragon Capital has significantly decreased as a result of the hostilities. According to the founder and CEO of the company, Tomas Fiala, Dragon Capital currently owns approximately 600,000 square meters of real estate, while at its peak, this figure reached 800,000 square meters.

This is reported by AgroReview

Company Losses and Portfolio Structure

Since 2016, the company has been able to grow its portfolio to a maximum of 800,000 square meters. This included warehouses (400,000 sq. m), office spaces (200,000 sq. m), and shopping and entertainment centers (200,000 sq. m). However, at the beginning of the full-scale invasion by Russia, part of the warehouses – three properties – were destroyed, which significantly affected the overall volume of the company’s real estate.

“At an average estimate of $500 per square meter, the loss of 115,000 square meters is valued at around $65 million.”

Strategy During the War and Reducing Debt Burden

During the hostilities, the management of Dragon Capital decided not to launch new projects but to focus on the development of existing properties. Special attention was paid to reducing the debt burden, which previously amounted to about $250 million against a market value of the portfolio of $600-700 million. According to Fiala, today only $40 million remains from this gross debt, and the company’s net debt has been reduced to zero.