Following the revival strategy adopted by XXI Century developing group (Kyiv) to reduce ongoing costs of non-core projects with a view to optimizing the Company's development portfolio, its board of directors has resolved to terminate the company's investment activity in five projects in Kyiv city and the regions, read a report posted on the Web site of the London Stock Exchange (LSE).
The following projects were selected: Garant-Invest LLC, House & K LLC; Aqua-Sherl LLC (project “Aquapark”); Megagrad LLC (project “Kiyanovsky”); Ukrainian-German Building Company LLC (project “Kvadrat-Sumi”); and The Fifth Element LLC (project “Poltava”), reads the report, referring to the decision of the board of June 20, 2013.
The directors anticipate completing the disposals within the next six months and further announcements will be made as required.
The report says that three out of the five projects were included in the company’s investment portfolio assessment as of Dec. 31, 2012, particularly, the market value of the project “Kiyanovsky” is $5 million, the market value of the project “Kvadrat-Sumi” is $1.3 million and that for the project “Poltava” – $17.2 million.
The disposal of the projects will enable the company to conserve funds and focus on its core strategic projects which could potentially provide better returns in the future, reads the report.
Earlier XXI Century Director General Oleh Salmin said that the group is planning to give up renting three land plots in Kyiv and the regions to reduce the expenses burden on the company. Salmin said that the rent of one land plot cost $500,000 per year.
XXI Century has been working on the real estate market of Ukraine since 1999. The shares of its holding company since December 2005 have been listed on the LSE (the company raised $139 million).
The group’s real estate portfolio was appraised by CB Richard Ellis. As at Dec. 31 2012 the value of the Group’s share of properties in its portfolio stood at $299 million compared to $335 million at the previous year end.
