 |
|
|
| Company Overview and strategy |
|
MirLand Development Corporation Plc is an internally managed, Cypriot domiciled real estate development company which was incorporated in 2004 and operates solely in Russia. Controlled by the Fishman Group, an international real estate investment and development group based in Israel with over 30 years' experience in the real estate development market, the Company is currently one of the few developers in Russia to build international quality commercial and residential properties employing Western business practices. The Company also differentiates itself by being one of only a few international developers currently active in Russia's secondary cities. MirLand offers investors an attractive portfolio of existing Russian development projects, a substantial pipeline of other real estate investment opportunities across Russia and a strong management team, comprising local professionals and international real estate experts.
MirLand's strategy is to focus on developing (a) high quality commercial and residential real estate assets in Moscow and St. Petersburg and (b) commercial projects in other large Russian cities. The Company aims to maximise Shareholder value, while maintaining geographical and property type diversification. The Company's policy is to sell residential properties and lease or sell commercial properties.
|
| The Company has the following investment strategy: |
Focus on the successful execution of development projects
The Company has an existing Portfolio of 8 projects which are anticipated to complete in the 2007-2012 period. The Company is committed to the successful and timely completion of these projects, which the Company believes will generate significant shareholder value and an even stronger platform for MirLand's future growth.
The Company will also focus on successfully completing the new development projects it acquires going forward.
|
Generate value through active management
The Directors anticipate achieving capital growth of the existing Portfolio primarily through a combination of development and redevelopment, active management of rental assets and capital gains resulting from rising property values.
The Company will actively market all of its commercial projects during their development so that they are income producing at completion. The Company will reassess, on an on-going basis, in light of prevailing market conditions, whether to retain its commercial properties and their corresponding rental income or seek to realise their market value through disposal. The Company may also acquire already constructed yielding properties where the Company identifies an opportunity for attractive returns through renovation. The Directors anticipate that the Company will retain a significant proportion of its income producing assets within its portfolio.
The Company's focus for its commercial Properties is on long-term tenant relationships and it invests in pre-letting commercial space. While long-term leases are preferred with anchor tenants, bringing higher security of rental income, short-term leases with local companies may be favoured where rental rates are increasing rapidly.
It is intended that the residential properties will be sold and the resulting cash flow will either be reinvested in the business or distributed to Shareholders. The Company's strategy is to secure partial pre-sales of residential units in the early stages of construction with staged payments during the development process.
|
Continue to acquire attractive sites in targeted locations for future development
The Company intends to continue to selectively acquire attractive sites in specifically identified areas of Russia for development of office, retail, other commercial use, mixed-use and residential projects. The Company believes that focusing on high quality developments provides the Company with the opportunity of significantly higher yield, capital growth and returns compared with investing in completed projects.
Where the Company identifies opportunities located near to existing assets, it will seek to acquire and develop these properties to capitalise on economies of scope and scale during the development and management phases.
|
Maintain a diversified property portfolio to maximise investment opportunities and reduce risks
In order to capitalise on the most attractive development options while minimising the risks associated with any particular real estate sector or geographic region within Russia, the Company will maintain a diversified portfolio with regard to:
 Geographical location
Sector
Varying stages of development
|
| Business Model |
|
MirLand’s fully integrated business model creates a competitive edge for the Company in the Russian market:
|
|
|
|
|
|
|
