Главная » 2009 » Май » 9 » XXI Century Investments Public Limited announces the following trading update
XXI Century Investments Public Limited announces the following trading update
XXI Century Investments Public Limited (LSE: XXIC), one of Ukraine's leading real estate investment, development and property management companies, announces the following trading update.
Servicing debt obligations
The Company is pleased to report that, notwithstanding the continued problems in global capital and financial markets, which have also spilled over into Ukraine, and the increasing challenges arising from operating in the real estate sector in Ukraine, XXI Century is successfully meeting all short term debt obligations. In this regard, the Company recently paid approximately US$15.1m of interest and principal payments, comprising the semi-annual interest coupon on its US$175m Guaranteed secured Notes due 2010, as well as principal and interest payments to local banks under its mortgage-backed credit lines.
The principal sources of cash enabling these timely payments arose from sales of unsold apartments in Capitoliy and Parus, both completed residential projects in the downtown area of Kyiv, and also sales of properties under development, Balzaka and Lisnyky. Major cutbacks in personnel and administrative expenses, which were initiated early the fourth quarter were also a contributing factor. However, the full impact of these reductions will be felt in Q1 2009.
One of XXI Century's subsidiaries concluded a sales agreement with a local developer, pursuant to which the developer will receive 100% of the property rights to Kvadrat-Balzaka shopping centre in Kyiv upon completion of its construction, expected in Q2 2009. The developer has agreed to finance the remaining construction costs to complete this project and to pay an additional US$2.98m to the Company's subsidiary. Of this amount US$0.72m has been paid and the balance is payable upon the completion of the shopping centre. The Company has also agreed with the same local developer to buy his 20% share in the mixed-use project in Poltava for US$2.27m, thereby providing XXI Century with 100% ownership of this project. The parties agreed to finalize this transaction by May 1, 2009.
The sale of Kvadrat-Balzaka implies a discount to appraised value, established by Jones Lang LaSalle as at June 30, 2008, of 38%. In contrast, the acquisition by the Company of the remaining stake in the Poltava project transaction reflects a discount of 97% to the project's appraised value..The values achieved in both transactions compare favorably to the discount to NAV reflected in the Company's current market capitalization.
Details of further transactions will be announced when the final conditions of such deals are firm.
During September, October and November 2008, XXI Century sold over 1,500 sqm in the recently commissioned premium class Capitoliy and business class Parus residential buildings in Kyiv to various local buyers. The Company's two operating shopping centres in Kyiv, Kvadrat Perova and Kvadrat Lukyanivka, both enjoy occupancy levels in excess of 98%.
· XXI Century is one of Ukraine's leading real estate investment, development and property management companies
· Established in 1999, XXI Century has been listed on LSE's AIM market since December 2005
· The Company develops and manages real estate projects such as shopping centres (chain of Kvadrat shopping centres), offices, hotels, logistics centres and residential property at different development stages in Kyiv and throughout Ukraine