Good morning, everybody. We are sorry for the 5-minute delay. We are waiting for more people to join in. We shall be starting now the call. I hope everybody's hearing me.
Yes, we can hear you, Victor.
Perfect, Zuzanna. Thank you. We have together with us, we have Zuzanna that is in charge with capital markets and IR for One United Properties, and we have Cosmin Samoilă, the group CFO, which most of you already know all of us. We have now the preliminary results for 2022. I see we have on the call, we should have around 20 people that registered. Today we are lucky that we have plenty of questions. We have 12 questions registered before the call from both the English and the Romanian calls. We'll answer all questions to both to both calls. Hopefully we'll get more calls from you guys during the presentation. Please feel free to put them on the chat. Actually, we have 40 participants.
We had registered only 20, but in reality, I see we have 40 now. Thank you guys for joining. I think we have a record list of participants today. For the Romanian call, we have 68 registered persons. We are quite happy to have so many people interested in the company. Thank you. Let's proceed now with the presentation. Zuzanna, can you maybe... Zuzanna or Cosmin Samoilă, who is-
I'll do the intro.
Oh, thank you.
Thank you, Victor. Good morning and welcome to our preliminary 2022 results call. As Victor already mentioned, my name is Zuzanna Kurek, and I'm in charge of investor relations. We are joined here today by Cosmin Samoilă, CFO, as well as Victor Căpitanu, the co-founder, the co-CEO, as well as the executive member of the board of directors at One United Properties. We are here to discuss the 2022 preliminary results. Before we begin, I would like to mention that this call is being recorded. The recording of this call is going to be loaded on our website later this week. As mentioned in the call invite, by joining this video conference, you automatically and implicitly consent to being recorded. If you do not consent to being recorded, please leave the call.
In terms of organizational aspects, let me present you the setup for the call. Firstly, Victor Căpitanu will deliver a few opening remarks, recapping the performance in 2022. We will move to the financial analysis, which is going to be presented by Cosmin, as well as I will close the call with an outline of the key events that happened since our last call. During our presentation, feel free to type any of the questions that you might have in the chat, and we will answer them during the Q&A. Please note we will start with the questions that we have received on the email. After the presentation, please note that in order to ask the questions, you can only type them in the chat.
All of the participants are on mute, and it will remain as such throughout this call. Finally, I would like to mention that we might be making forward-looking statements during today's call regarding the future performance of One United Properties and that the actual results may differ materially. We encourage you to review the disclaimer that you can see right now on the screen, as well as you can find in all of our investor presentations, including the one that is currently updated on our website. This disclaimer applies equally to all the statements made in today's call. Now I would like to proceed to the first part of the call. Victor, if you would be so kind to share a few highlights regarding our performance in 2022.
Thank you, Zuzanna. Basically, I will go to the main highlights. The consolidated turnover increased in... Basically, let's start with this. 2022 fundamentally was a difficult year for the market generally. It was quite challenging with, you know, quite a pressure on interest rates that you all know, and you put all kind of questions during the year about it. You know, the war in Ukraine that provoked a general tension in the region and everywhere around the world. Generally the fear of recession and generally a difficult year, most probably most difficult over the last 5 years or so. On top of this, we locally in Bucharest have a quite anti-development administration.
This delayed us most of the new building permits between 6 and 9 months last year. Nevertheless, in the last 2 quarters, last quarter 2020, 2022 and first quarter 2023, we managed to get around 5, 6 building permits, which gave us quite a lot of firepower for 2023-2024, and I would say even 2025-2026. I think our firepower is extremely strong for the next coming 3, 4 years. Nevertheless, despite this environment, we are happy, quite happy with the results.
We managed to increase slightly the turnover of last year and the residential sales, despite the lack of supply, we managed to increase it with 9%, which was quite good because we sold most of the units that were remaining in the older developments. Which means that are mostly more illiquid units than the one you sell in the beginning, but also the value per unit is higher. If you'll compare 2020 to 2021, you will see that the amount per unit is significantly. Per unit sold is significantly higher. Also, you will see that the margin per unit sold is significantly higher.
Typically, the margin on unit you sell earlier in the development is lower, and the margin on the last units is that you sell in a development is typically higher. Also the amount per unit is typically higher. The cheaper units sell faster and have a lower margin. This is like a general principle. So we are quite happy with the revenue especially with the revenue from our residential sales, considering all the, let's say, all the negative elements of last year. On the EBITDA, we decreased 6%, so we are more or less in the... Now we are at 657 million lei. The gross profit was more or less in the same direction from 604 million lei to 573 million lei.
Nevertheless, the net profit remained almost flat, declined only at 1%, because the tax base was different for last year compared to 2022 compared to 2021. Basically, gross profit declined 5%, but net profit stayed almost flat with a decrease of 1%. These are like the big highlights. I will go also through some of the business highlights. On the residential sales, we sold 599 apartments in 2022. On top of this, we sold another 64 apartments in Cotroceni from the package we bought back from our Swiss investor fund, CC@ ONE, run by Claudio Cisullo, who is also Chairman in the Board and a significant minority shareholder.
We actually bought back 64 units from him, 67 units out of which 64 we sold in the same quarter, and we realized a higher than expected profit. We expected EUR 1 million when we bought it back, and it seems the actual profit will be EUR 1.6 million. We also got EUR 600,000 more due to the very high demand in Cotroceni. Cotroceni, it's an area that had more, even more demand than we expected, and we could sell a bit higher prices than we expected. That's why we recently acquired a new land for One Cotroceni Tower. We will double our development there since the demand was much higher than expected for both offices, commercial and apartments.
Apartments, as you know, we are almost fully sold out there. Whatever we bought back, we sold immediately. It makes a lot of sense to make the neighborhood in that area as big as possible. On top of this, 599 units and 64 units from CC@ ONE, we also sold around 40 units in One North Lofts, which we don't have the building permit issued yet there. We started to sell apartments in One North Lofts before issuing the building permit with just a very small down payment in order to be safe because the building permit is not issued yet. All this will be reflected in accounting in 2023.
We have 100 apartments sold more, but are not reflected in the typical accounting that we use for our company. End of last year, 62% of units under development are already sold out. Demand, we feel very strong. We feel the market generally is decreasing in demand, but we see a huge flight to quality. People want to give the money to serious developers where they know they cannot lose the money, where they know they can buy a product that is lasting longer in time, and where they can see their money invested in the apartment have more value in next 5 years, 10 years or longer, and have better protection for inflation.
I see we have a big advantage compared to the rest of the market, where a lot of residential developers are really suffering, especially on the low end of the market. If you take out the new building permits end of 2022, we have 82% of the developments, of the units under development sold out. This is on the residential update and residential, we are very positive for the years to come, at least 10 years ahead. We think this is by far the biggest growth opportunity of the company. As you know, we recently raised capital in August, EUR 51.5 million, for a new pipeline of residential developments. We have planned at that moment to buy 10 new locations, using the equity raised. We have already acquired 6, and we made it public.
Another 4, we are in advanced negotiations and some of them most likely will close this year, but it's possible 1 or 2 of them to be closed and announced even in 2024 because some of these locations require buying more property in the same place. Even if we work on it very hardly, we will not be able to announce it public very early in order not to affect our acquisition price. On the office side, we are happy how it's going. One Tower is rent leased out 100%, and we have a big waiting list.
One Gallery that we developed near One Tower will also have half of the development office space, 6,500 sq m, the full first floor. The big waiting list and demand from One Tower will surely help us fill the first floor in One Gallery, which most probably will be the most attractive and interesting office space in the city, also, most probably the most expensive. We have One Victoriei Plaza, recent acquisitions that is leased 100%. One Cotroceni Park Phase One is leased 87% now. Most of the tenants are moving in. Hopefully by the end of this year, we'll be fully leased and all the tenants will be in, and 2024 will bring full rent to the company.
One Cotroceni Park Phase Two is now a reception, so it's finished and 50% is rented out. We have some very nice tenants. The largest tenant in the building, British American Tobacco Service Center, 12,000 square meter. We have Siemens Energy. We have even more spaces per company and bigger international names than in phase one. The demand is strong hopefully we lease it fully by the end of this year. Hopefully we'll most likely we'll bring full rent to the company starting with 2025. We'll bring partial rent 2024 and full rent from 2025. Besides this, we have Bucur Obor that is performing very well. It has it's fully leased basically. We are doing some optimization of spaces.
We'll do also some investment that will improve the flows, energy efficiency of the building, the access to parking. Nothing that can be seen. People, you know, people will still come without taking their shoes off to Bucur Obor, as I mentioned before. You want to keep the same feeling for a low to medium audience, but you want a bigger energy efficiency building and better flow of people. This year we will improve all of this, plus we are trying to improve also the rents. Besides this, we have One North Gate, which used to be Renault headquarters for Romania for many years. It has 2 buildings, 23,000 sq m in total, 18,000 sq m.
A bigger building that we are now renovating and refurbishing fully in a very good quality residential product with 140 apartments, which is called One North Lofts. The smaller building remained office, 4,500 square meters of office. It is leased around 60%-70% at this stage, and we took the decision to dispose it. Due to the size, it's a small size and is not material for the business. Plus we also have some minority investors there. I think it will make sense this year to dispose the smaller office building there. Besides this, we have another office building that is rented 100%.
It's called One Herăstrău Office, we are quite advanced to sell it and hopefully, we'll close the deal in the first half of this year. Nevertheless, it's not material for the company. We only have a small shareholding, a final beneficial shareholding of 20%. This is mainly the reason why we want to sell it. That is not. We bought it empty, we leased it out completely, and I think due to the size, it doesn't make sense to keep it. Strategically, most probably we'll dispose the small building in Northgate and One Herăstrău Office, and we'll keep the others. On the retail part, I started already with One Gallery and with Bucur Obor. One Gallery also the demand is extremely strong.
It's a landmark building for the city. It's an industrial monument in the heart of Floreasca. The demand for the ground floor is huge. Is much more demand that we have space. We have MoU understandings for all the space, but we didn't start signing the lease contracts because we still try to find the best mix, and we really want to make it work to be a very successful retail place in the center of the city. For the office, we are trying on the first floor, we are trying to use all the pent-up demand from the One Tower, the office building nearby. One Gallery will be ready in 2024 and open to the market. We have very good names on the ground floor that are interested, local and international names.
We are quite confident this will be very successful commercial addition to our portfolio. As I said before, we are not interested of retail in general, we are not interested of retail parks. We don't like it. We're not interested of shopping malls. We are not interested of warehousing, of logistics, which also we didn't like it for reasons I spoke in previous calls, but I can detail if necessary. We like these extremely central commercial places with very good brands that are very, very difficult to be replaced. We like only these kind of locations that are very difficult to be replaced.
On top of the Bucur Obor One Gallery, which are the main commercial assets, let's say, retail assets, we also acquired recently three property in the historic center of Bucharest or geographical center of Bucharest. They are called One Athénée, One Plaza Athénée, and One Downtown. One of them is a historical monument, very famous for the city, close to the Romanian Ateneum, is One Athénée it's called. We got the building permit for it because it was a question in the... I'm answering now also one of the questions. One Athénée got the building permit last year, end of last year. I think I may have said in the last call. Now we are starting basically the building and the rehabilitation of the building.
We have a client that pre-contracted to buy the whole building. From the company point of view, it's only construction is going forward to finish the building and to deliver it to the final client. In a way, this is a kind of closed deal. On the same street, we bought another unfinished, abandoned building for a hotel, which will be called One Plaza Athénée. It will have 100 rooms. It will be a five-star lifestyle hotel. Will take advantage of the Romanian Ateneum, the new Intercontinental Hotel, and also of One Athénée, our new building. We think this will be a highlight for the city, we think will be one of the most...
Hopefully one of the most attractive places to stay in Bucharest. Most probably, we'll put also some investors together with us in this property in order to deploy less equity and to increase the return on equity and to diminish in a way the risk of the fact that we haven't developed hotels before. We try to make it less risk and more profitable for the shareholders of One United Properties. On top of this, we bought another location, which will be called One Downtown, which is made from three abandoned buildings near the University of Architecture. It's very central in the city. We are analyzing now best use, if it will be apartments or a hotel or a mix. This will be very important. It's a profitable, very profitable deal for the company.
We bought 7,000 square meter with less than EUR 600 per square meter. It's, we bought it really bargain. It was a really bargain. Regardless of the final decision of the use of the property, it will be very profitable for the company. This probably will start building in 2024 and will take another 2 years. Probably will be delivered 2026, 2027. This is more or less. Beside this, on the commercial side, let's say office retail, we bought last year another property called Eliade Tower. It's an office building built during communist time.
It was refurbished by Globalworth in 2004, 2005, and sold it in 2006 with around EUR 29 million, if I'm not wrong, to Eurobank, a bank in Greece. Last year, after 16 years of holding, they decided to sell it, so we bought it at EUR 9.5 million, so they marked a loss of EUR 20 million on it. They didn't do too much good deal, but I think we will do a great deal because the land has 5,000 sq m. Until we find the best use, we are collecting rent from the tenants. The building is rented 50%.
Hopefully after we find the best use, in few years' time, we will be able to demolish it and build an iconic building for the city instead. It has huge advantage that is exactly part of the property of One Floreasca City, with one of the maybe the best view in the city towards toward Floreasca Lake and Floreasca Park. The location is really unique on Mircea Eliade corner with Floreasca. This is let's say like an introduction from me. I will let my colleagues, Cosmin and Zuzanna, to go through the financial results and the rest, and I will come back to the Q&A in the beginning. Maybe we can leave 10, 15 minutes for Q&A. I don't know if we can move so fast. Thank you, guys.
Good morning. Thank you for attending our conference call for the preliminary results of 2022. In terms of the key financial figures, we have a turnover increasing with 4% compared to last year, up to RON 1.2 billion. The main components of the turnover is the revenues from apartment sales with RON 779 million. Also other components, rental and tenant service revenues gained from office under development, gained from bargain purchase, gained from investment property under development for future development, and also other operating income. The gross result also a slight decrease compared to 2021.
For the ones of you that followed our performance also in 2021 and know the results in 2021, it was a record year for company results. At that in that year, we had the profit 3 times higher than the year before, 2020. We are maintaining the results of the company at the same very high level, reaching consolidated gross profit of RON 570 million. In the same time, the net profit, it's only a 1% decline compared to the year before. In terms of the results of the residential segment, we have revenues increasing 9% up to RON 769.5 million.
In the same time, the net income from residential sales increasing even more compared to last year compared to the year before, with 29%. The margin on the residential sale is 41%, and this is 6 percentile points more than it was in 2021. In terms of the sale, we sold in 2022, 599 apartments with the best-selling development, One High- District, One Cotroceni Park, and One Verdi Park. In terms of the commercial segment, we. The rental income and the revenues from services to tenants, mainly generated from the office sector as well as the retail division, registered almost 7 times increase, up to 76.9 million RON.
The effect of such significant increase was driven by the tenancy One Tower, which is leased 100%, the tenancy One Cotroceni Park, 87% leased, One Victoriei Plaza, and also One and also Bucur Obor. This rental income and revenues from tenants is expected to increase even more in the next quarters as currently we are under delivery and reception of the second phase of One Cotroceni Park office. This will generate also income starting this year. As well as, we will have consolidated for the full year the new acquisitions that we did in 2022, namely One Victoriei Plaza and Bucur Obor. In terms of the other P&L items, we have in general and administrative expenses, including the stock option plan effect, an increase of 65%.
This is in line with the growth of the company and the fact that the company is publicly listed. Also, we have incurred expense into the capital increase operation. The non-cash stock option plan allocation was recorded at RON 46 million during 2022. We have also other operating expenses of RON 15.5 million. Namely here are basically sponsorship, which most of them will be deducted from the profit tax. As a result, the EBITDA decreased 6%, amounting to RON 575 million, primarily due to the decrease in overall gains, as well as the impact of the described above non-cash stock option plan implementation.
We go to the financial position of the company, namely on the asset side, this is very consistent, and this evolution is very successful for the company. Having total assets increasing 52% compared to the end of the year before. Looking at the last 3 years, we had a compounded average growth rate of the total asset of 48%, which is quite successful. In terms of the composition of total asset, we had the current asset growing 45% up to RON 1.9 billion, mainly due to the increase in trade receivables and increase in residential property inventories. All the residential property inventories increased in value compared to the year before.
Important to mention that out of the developments that are already finalized and reception, we had only 21 units of finalized stock available for purchase. Going further to the non-current assets, this also had a strong increase of 57% up to RON 2.3 billion. This increase is mainly generated by the investment properties increase, with 55% and almost all the development in this category had an increase in value. Most notably at One Cotroceni Park Office Phase Two which has been under construction stage during 2022, and it's now ready to be reception-ed and in the next month tenants will move in phase. Also, we have increases in One Athénée and One Cotroceni Park Office.
This increase is also generated by the many new commercial properties that have been acquired, namely Bucur Obor, One Victoriei Plaza, One Plaza Athénée, One Downtown, as well as apartments that are registered for designed for rental purposes. If we are going further to the liability side, here we have an increase in the non-current liabilities, driven mainly by long-term banks, which primarily represent financing of development and also acquisition. It's very important to mention that the commercial segment requires more financing than the residential segment. As the company balance sheet mix, it's changing and it's going also to more commercial property. Gradually also the financing and the debt, it's increasing.
Nevertheless, the average maturity of the outstanding loans for the investment property asset was for 8.8 years, while for the development of residential property it was for 1.2 years. Here, of course, the maturity is lower because it's allocated to 2 of the developments, One Verdi Park and One Timpuri Noi, which we are going to deliver during this year. In the moment we are delivering to clients, also the bank loan will be repaid. On the current liabilities, we had an increase significant also due to these short-term loans, which are mainly related to residential inventories and also to the current portion of the long-term loans. Related to the cash position.
The cash position was still very strong, increasing 12% compared to the end of 2021. This was mainly increased by the contribution of the share capital increase that was finalized in third quarter of 2022. Despite of the fact that we continuously invested in properties and we did acquisition and also we had a dividend payout during 2022 of 78.6 million RON. The loan-to-value ratio maintained very low. The leverage is very low, 28% only as of the end of 2022. It is a slight increase compared to the end of 2021, when it was 24%.
This slight increase is mainly due to the acquisition of One Victoriei Plaza, which was partially financed with a bank loan, and also of course, other drawdowns that we had for various development. Nevertheless, the loan-to-value ratio is still very low compared to real estate industry and compared to other European peers where it's very hard to find real estate companies that have a leverage below 50%. Net debt, it's RON 263 million, and it's only 6% from the total asset of the company. Related to the cash component, cash inflows. As of 31 December 2022, we had contracts already signed with client for selling residential properties amounting to RON 231 million additional cash inflows by year 2025.
What we see here on the right part of the graph, this is the cash flow from units that are already signed as of the end of the year. They are excluding, of course, the units that are going to be signed this year or in the next years. Of course, we have many units which are going to be signed and going to available for sale in the next period. As of beginning of this year, from the developments that are finalized or under construction, we had 2,285 apartments that were already sold and another 1,143 residential units available for sale and pre-sale.
On top of this, during the first half of this year, we will launch for retail sales also another 1,157 units, which are located in two developments, One Lake District and One Lake Club. This new units available for sale will further increase the cash inflow for the next period. Also in the left side of the graph, you can see the actual cash inflow, which was generated from residential properties in the year 2020, 2022, and we see clearly that it was a growing trend and we are expecting the growing trend to continue in the future.
Cosmin, sorry for interrupting. We should finish presentation in, two, three minutes. I don't know if you or Suzana continues.
Yes, I'm gonna finish.
We have at least 10, 12 minutes for the questions because the call ends sharply at 11. if you can.
Yes.
go, like, very fast the rest, like, 2, 3 minutes, because anyway, everybody read it, and I think Q&A is more important.
In terms of the residential, can go on. In terms of residential pre-sales, as it was mentioned earlier in the call, we sold in 2022, 599 units with a total surface of 53,000 square meters. What is important to mention is that, compared to last year, we sold 100 units less. Last year it was 699. However, we sold additional 107 units, out of which 43 are units sold at One North Lofts, which are not yet recognized under the revenues. As well as we resold the 64 units at One Cotroceni Park that were bought back in the third quarter from CCI at One.
In terms of, in terms of the sales, you can see on this slide how it's the split per development. The what is very interesting is that the best-selling development of last year is actually One High District, where the sales started in November last year, which means that in 2 months we sold 274 out of 786 units. That's becoming one of our best best sellers last year, as well as overall. In terms of the developments where the sales started in the fourth quarter, we started sales at One Mamaia North, the second part in October 2022, One High District and One Floreasca Towers in November 2022.
That means that 1,080 residential units were added to our sales team portfolio in the fourth quarter, out of which 28% were already sold in less than a quarter. In terms of the trends, these are maintained compared to the previous quarter. In terms of two-room flats, this amounts to over 50% of the sales. We had very good sales at One High District, but also at One Verdi Park, which is due to be delivered in the first half of this year. Continued good sales for One Cotroceni Park, as well as One Herastrau Vista and other development, where the sales started in the third quarter of last year.
In terms of some highlights, between the fourth quarter of last year as well as the first quarter of 2023, we received permits for developments where we will build 3,733 apartments. That solves the issue of the stock that we had throughout 2022. Please note that not yet the sales at all of these developments have started. For example, at One Lake District, phase one, as well as the first phase of One Lake Club, the sales will start in the coming weeks.
When it comes to acquisitions in February, so earlier, last month, we announced the acquisition of a, of a almost 4.5 hectares plot of land, near One Cotroceni Park, which is going to host One Cotroceni Towers, continuing the success story, of One Cotroceni Park. There is going to be based both, residential and commercial units, as well as we are going to have the third and the fourth phase of One Cotroceni Park. Last but not least, in terms of unrealized revenues from the sales of residential properties that were, that did not happen in 2022 because of the delays of the authorizations, naturally, these are going to be realized throughout, in 2023.
We are going to publish our budget, which, via current report later this month, ahead of the general meeting of the shareholders, which is scheduled to take place on 25th of April. I would like to close this part of the call with the graph, with the stock price evolution. Compared to the BET main index of the Bucharest Stock Exchange, One United Properties shares declined, slightly, meaning, registered a negative evolution of approximately 11.9%, while BET declined 10.7%.
Compared with the major real estate indices from Europe, we noted a significantly better performance as those declined between 30% to over 40% in the course of 2022. Last but not least, in February, our shares were maintained in the mid-cap category in the FTSE Global Equity Index Series for emerging market. This concludes our presentation. I would like to start with the Q&A. We got 2 questions related to future financing that I'm going to read out now. The question is the following: Is it possible that in the future you can also finance your investments through bond issues on the Bucharest Stock Exchange in RON or in euro? Victor, would you like to take that?
Yes. Just to be faster, I will read the questions. I will start with your first question, I'll go first with the ones from the chat, which I think are more relevant. In the future, you can never anticipate if you'll use bonds or not. Though today it seems less likely because the interest rate, especially on the Bucharest Stock Exchange, are very high. You know, the Romanian state is paying now, like 7% or 5%-7% for EUR, the premium is quite high. I think it's quite risky at this stage to take bonds with high interest rate and low duration. It's better for us to take cheaper bank loans with longer duration back-to-back with the rest from the office building.
For the short term, it doesn't make sense. I'll go with the questions. I'll go just a bit faster with the talking, just to cover more questions. I'll go with the questions from Vishal, from the chat, which I think is very relevant. Can you talk about competition for sites and how that is impacting prices for future opportunities and does it impact margins? This is very important questions because today, what we have seen last year, because it was a difficult year, suddenly more sites than before were offered to us in more competitive prices. Basically, what we have seen last year, that although our demand for product, final product was very strong, the offer for sites available increased and the prices became more competitive.
Indeed, the construction cost is increasing, so I'm not sure if we can increase the margins, but we have at least the opportunity to maintain the margins for quite a longer term. I think we have much more sites, much more great sites available than we ever had in the last five years. It's a great moment to secure lands and options on lands for the next 10 years. You know, if you buy a great land in a great location at a low price, your margin is, your high margin is secured for a long term. Another question from Vishal, which is also important, is about planning and how this works. It's very important, and I've said it many times before, that we never buy a plot of land without planning.
We only buy plots of land that respect the planning of the city. We never change the planning. Sometime we need to do details of the zoning, and we require a Zonal Urban Plan or detailed plan, but this is within the city planning norms. This make it much shorter to permit a plot of land. Typically, the planning and the building permit takes between one and two years in this market, which I think is considerably lower than Western Europe. Still for us, sometime it feels long, but if you see the bigger picture of European Union, it's quite competitive, even with a difficult administration that we have today. For the hotel developments, we have only one that we want to do hotel now, One Plaza Athénée.
We are very advanced to sign with an international well-known hotel chain. We negotiated with all the chains, probably we'll choose the biggest and the more reliable for the local market and for the European market. We will most probably take an equity partner, which is a pure investor in the hotel, to finance his equity and part of our equity. Our equity contribution we expect to be very small for this property, just because we don't have experience yet. We will have a long-term, 20-year or more contract with a very reputable, high-end international hotel operator that will not be an equity holder, will be only an operator.
On the part of know-how, we are bringing now a very experienced guy from Qatar, which is running the biggest hotel developer and operator in Qatar, and will be a minority partner with us, and he will be in charge of day-to-day business. He's a very, very, very experienced international hotel operator guy, expert. It's a great addition to our team. Any other hotel we may or may not do in the future, we will do under the same kind of structure. We will not risk anything. We will take all the precautionary measures to be highly successful. It's important to know that there are no good hotels in Bucharest. Everything is crap. It's very easy to compete because there is no good product on the market.
In the same time, it will not be a strategic route for us. We will only do it if it improves areas where we develop and will help us with the sale of the apartments or the rental of the office buildings. We only use this as a component in the overall mixed-use development picture that our company has. It's not like a strategic direction. It's more like a part in the mix, like we do commercial as part of the mixed-use developments. We have planning, we have any notice when we have progress.
Yes, from Angus. Thank you, Angus.
Indeed, the local government is very happy to see the regeneration of downtown Bucharest. That's why the building permit we got quite fast, to be honest. We got urbanism in 2 weeks since we applied and the building permit, like in 1 year. It went really, really fast. Any historical building or very central building is very well appreciated by the current administration, and this is why one of the reasons we went in this direction, not only for the profit, because they are also very profitable, I have to say. Jacob, thank you, too from me. How many apartments do you expect to sell in 2023? For sure, we expect to sell more than 2022 where we didn't have enough supply, but we cannot estimate at this stage.
We will publish a budget in few weeks time. Between this call and the general meeting of shareholders, we'll have a budget. I don't know if you put also exact number in budgets, but please follow the budget, Jacob. Can you talk about key cash and outflows of 2023? How much do you expect to receive from sales? How much to spend? How much? We'll put all this, Jacob, if you don't mind, in the budget, hopefully like in 2 weeks. We'll make it public, and I hope I'll answer much of your questions there. If they are not answered there, please follow up with a mail to us after the budget presentation and we'll try to detail you as much as needed.
Regarding the capital, especially debt, because we have this question also on the other list. It's important to know that going forward, we'll take a bit more debt because office buildings need debt to develop because you don't have the sales. But it's important to know that we take long-term debt, like 10, 15 years, and we match it with the future rental. Basically, debt for office buildings is long-term and paid from the rents. Short-term debt, we keep it very low, but still we'll need some short-term debt for the medium income developments. Where we finance our clients, we only take 30% down payments and 70% in the end. Then we have a cash flow gap until the development is finished. For medium income developments and for office buildings, we'll need to...
We are already taking a bit more debt. We'll make it just in residential back-to-back with the sales and in office back-to-back with the rents. We don't take speculative debt. We'll keep it very low. On One Modrogan from BT Capital Partners, thank you very much. One Modrogan, we have the construction site. It's stopped for the time being. We have a trial. We didn't judge yet. We tried to suspend this decision. We are not successful. We wait to have a court decision on this. We didn't went to the court yet. We didn't have any term yet. We are very confident we will make justice for us because, you know, we work for the building permit very a lot of years. We have everything by the book.
We wait for the court to judge in this direction. We are very confident on the result. That's why we decided there is no need for provision at this stage compared to what is the recognition in the accounting up to now. Number of apartments sold, please see the budget. Occupancy rate building, C-body of the building. One Cotroceni Park phase two is now like 50%. We have a question, the C-body of the building, and we expect to be fully leased by the end of the year. We have very advanced negotiation with tenants, so we are quite confident on this. We will be building also One Cotroceni phase three, and we have also One Cotroceni Park phase four.
We'll build 2 more phases in the next 3-4 years, which will be in total around 60,000 more square meter GLA. We have fantastic demand for office building space rental in Cotroceni. That's why we will increase the property over the next 4 years from 80,000 to 140,000. We'll be the biggest office park in Bucharest. Now I'll go very fast. We just have 2 more minutes. We'll go very fast on the questions that we got before. Bonds, One Modrogan, urban regeneration, historical building. One Gallery is estimated to be completed 2024. Stock split or buyback, we don't expect to have this year. We have a buyback program approved, but we didn't use it yet, and I don't think it will be the case to use it.
How much dividend you estimate to be distributed will be announced in approximately 1 month when we convene the general meeting of shareholders. Do you plan to finance through bonds? I think for this year is not the case because the interest rates are too high. General administrative expense, this is very important because it looks like a big expense, but it's not. Because from this expense, which is a total of RON 99.7 million, RON 46 million is related to stock option plan for performance in 2020 and 2021. For our performance in 2022, we got 0 shares and 0 salary. We are not paid at all as managers for 2022. It was paid 0.
We had to recognize the stock option plan from 2020, 2021 when we think we had a great performance. RON 46 million out of RON 99 is related to stock option plan. It's a non-cash expense. It's important to know that 60% of that comes from me and Andrei from our pocket, from our shares. Only RON 19 million in shares. It comes from the rest of the shareholders in 2020 and 2021. This is the main part and part of the general administrative expense. Also RON 7 million came from donations, sponsorships that will be mostly deducted from the tax.
The real increase is not so high and if you take out the stock option plan and the sponsorships, it's only 3.9% of the total turnover of the company, the general and administrative expense. What do gains from negotiated purchases means? Gains from negotiated purchases is the gain that we made from Bucur Obor because we bought it at a huge discount. It was maybe the best opportunity we had this year. We bought really for a very, very low price, a fantastic property, very well located, that generates EUR 5 million rent, net rent per year. It's a fantastic addition to the portfolio. What other purchases we have planned for other developments? This is the last question. We have a lot of property under negotiation, so we always have around 20 sites that we negotiate.
Maybe some of them will close this year, maybe not. Now we are quite full with the acquisition. Last year, we did a lot of great acquisition. This year we also do a few, but we now have, I think we are covered with a fantastic pipeline for the next 10 years, so we will not rush it in any way. I think it's-.
Thank you, Victor.
Last question, I don't see anything else on the chat.
No.
I think we are running a bit also out of time, Zuzanna, no?
Yes. Thank you so much.
If you have more questions, just send us direct mail, please. I will gladly answer all questions that were not answered yet.
We have another call in Romanian since we do both English and Romanian calls. What I did want to conclude with is that we have announced on 13th of March, we are going to organize an investor day at One Tower, and we would like to invite you all to join us in person or online. You can register for this event at one.ro/investor-day. We hope to see you all there. We will also publish the details via the current report. Thank you all for joining us today. We hope we answered all of your questions, and we look forward to seeing you in May as well at the next call. Have a great day.
Thank you very much. Please register for the investors' day because the spaces are limited, and it will be a great event in the best space we have in the company. Thank you.
Thank you. Bye-bye.
Thank you. Bye-bye, Victor.