Mirland Development Corporation PLC Trading Update (0322V)
August 04 2015 - 6:31AM
UK Regulatory
TIDMMLD
RNS Number : 0322V
Mirland Development Corporation PLC
04 August 2015
4 August 2015
MirLand Development Corporation plc
("MirLand" or the "Company")
Trading update
MirLand, one of Russia's leading residential and commercial
property developers, today announces a trading update for the three
month period ended 30 June, 2015.
The Company's independent property valuer (Cushman and
Wakefield) has indicated that a preliminary valuation of the
Company's portfolio of investment properties and investment
properties under development as of 30 June 2015 will record a
decrease during the second quarter of approximately US$32 million
of the value of the portfolio attributable to the Company. This
decrease is on a non-cash basis and, therefore, has no effect on
the Company's cash reserves.
As a result of this revaluation, MirLand expects the second
quarter results to be affected by an equity reduction of
approximately US$42 million and an equity attributed to
shareholders reduction of approximately US$40 million. In addition,
the Company expects the gross value of the portfolio attributable
to the Company to decrease from approximately US$571 million as at
31 March 2015 to approximately US$506 million as at 30 June
2015
The decrease in the value of the Company's projects and
investments has occurred due to the ongoing negative impact of the
Russian economy. In particular, Russia has seen a significant and
continued devaluation of the Rouble against the US Dollar alongside
the continued negative effect of low oil prices and the recent
downgrades of the Russian Federation sovereign credit rating by
Standard & Poor's and Moody's. The outlook for Russia remains
both challenging and uncertain.
Despite the difficult market conditions, MirLand has maintained
a generally positive operating performance in Rouble terms and has
seen a relatively high average occupancy of approximately 85% in
its yielding assets. In addition, sales at the Company's flagship
Triumph Park residential development have continued at a moderate
pace, with 345 units sold since the beginning of the 2015 financial
year.
The Company is continuing its discussions with the trustees of
the Series A-F bondholders to agree a restructuring of its debt and
will update the market in due course.
The Company intends to announce its results for the six months
to 30 June 2015 on Wednesday 19 August 2015.
MirLand Development Corporation +7 495 787 49
plc 62
Nigel Wright, Chairman +44 7909 915999
Roman Rozental, Chief Executive +7 499 130 31
roman@mirland-development.com 09
FTI Consulting
Dido Laurimore / Tom Gough
/ Ellie Sweeney +44 20 3727 1000
Investec Bank plc
Jeremy Ellis / David Anderson +44 20 7597 4000
It should be noted that the figures presented in this update are
estimates based on preliminary data. The preparation of the
Company's financial statements is currently underway and remains
subject to a final review by the Company's auditor. The figures in
MirLand's audited financial statements may differ from the
information stated above.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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