STRICTLY CONFIDENTIAL –
FOR ADDRESSEE ONLY
Valuation Report
MORGAL INVESTMENTS LLC
Of the following Property
LAND PLOTS OF 2,397,107
SQUARE METERS LOCATED ON
THE INTERSECTION OF
PULKOVSKOE AND
VOLKHONSKOE HIGHWAYS IN
SAINT PETERSBURG, RUSSIA
VALUATION DATE:
31ST OF DECEMBER 2007
ISSUE DATE:
24TH OF MARCH 2008
Prepared by
Cushman & Wakefield
Stiles & Riabokobylko
115035, Moscow, B.
Ordynka Street, 21/2
Tel: +7 (495) 797-9600
Fax: +7 (495) 797-9601
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Table of Contents
A
INTRODUCTION
-5-
1
INSTRUCTIONS
-6-
1.1
Confirmation of Instructions
-6-
1.2
Conflicts of Interest
-6-
1.3
Inspections
-6-
1.4
Background to the Valuation
-7-
2
ASSUMPTIONS, DEPARTURES AND RESERVATIONS
-7-
3
INSPECTION
-7-
4
SOURCES OF INFORMATION
-7-
5
GENERAL COMMENT
-7-
6
VALUATION
-8-
6.1
Market Value
-8-
7
CONFIDENTIALITY
-9-
8
DISCLOSURE AND PUBLICATION
-9-
B
PROPERTY SCHEDULE
- 11 -
1
LOCATION
- 12 -
1.1
General
- 12 -
1.2
Communications
- 12 -
2
DESCRIPTION
- 14 -
2.1
General
- 14 -
2.2
The Future Development Concept: “Planetograd”
- 15 -
2.3
Site Area
- 17 -
3
ENVIRONMENTAL CONSIDERATIONS
- 18 -
4
TENURE
- 18 -
5
MARKET COMMENTARY
- 20 -
5.1
Brief Economy Overview
- 20 -
5.2
Retail Market Overview
- 21 -
6
VALUATION METHODOLOGY AND COMMENTARY
- 88 -
7
VALUATION SUMMARY
- 96 -
C
APPENDICES
- 97 -
APPENDIX I PHOTOGRAPHS OF THE PROPERTY
- 98 -
APPENDIX II ANALYSIS
- 99 -
APPENDIX III INFORMATION SUPPLIED
- 108 -
APPENDIX IV VALUATION LICENSES
- 109 -
APPENDIX V PRINCIPAL TERMS AND CONDITIONS OF APPOINTMENT AS VALUERS
- 114 -
Valuation Advisory
-2-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
EXECUTIVE SUMMARY (STRICTLY CONFIDENTIAL – FOR ADDRESSEE ONLY)
LAND PLOTS OF 2,397,107 SQUARE METERS LOCATED ON THE
INTERSECTION OF PULKOVSKOE AND VOLKHONSKOE HIGHWAYS IN SAINT
PETERSBURG, RUSSIA
DATE OF VALUATION:
31st of December 2007
LOCATION:
Located
on
the
intersection
of
Pulkovskoe and Volkhonskoe highways
in Saint Petersburg in the Southern part
of the city.
DESCRIPTION:
As far as we understand the Property is
represented by 3 land plots of 239.71 Ha
in total. Morgal Investments LLC (“the
Client”) plans to develop a big residential
region
including
retail
centres,
community centres, educational facilities,
sport centres as well as all other
necessary residential facilities on these
land plots.
TOTAL AREA:
TENURE:
239.71 Ha
Land plots:
Land plot with cadastral number 78:14:7723B:25 containing 79.14 Ha is held freehold
by Morgal Investments LLC according to the “Certificate of State Registration of
Ownership” #78-АГ 049881 as of 6th November 2007
Land plot with cadastral number 78:14:7723B:22 containing 77.45 Ha is held freehold
by Morgal Investments LLC according to the “Certificate of State Registration of
Ownership” #78-АГ 049827 as of 6th November 2007
Land plot with cadastral number 78:14:7723B:27 containing 83.11 Ha is held freehold
by Morgal Investments LLC according to the “Certificate of State Registration of
Ownership” #78-АГ 049882 as of 6th November 2007
Valuation Advisory
-3-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
LAND PLOTS OF 2,397,107 SQUARE METERS LOCATED ON THE
INTERSECTION OF PULKOVSKOE AND VOLKHONSKOE HIGHWAYS IN SAINT
PETERSBURG, RUSSIA
Buildings:
There are three dilapidated non-residential pieces of property located on the subject
land plots.
The Property cadastral number 78:7723B:7:34 containing 52.1 square meters is
freehold by Morgal Investments LLC starting from 17 September 2007 as stated in
Ownership Registration Certificate #78-АГ 049883 as of 6 November 2007.
The Property cadastral number 78:7723B:7:35 containing 219.5 square meters is
freehold by Morgal Investments LLC starting from 17 September 2007 as stated in
Ownership Registration Certificate #78-АГ 049884 as of 6 November 2007.
The Property cadastral number 78:7723B:7:36 containing 52.1 square meters is
freehold by Morgal Investments LLC starting from 17 September 2007 as stated in
Ownership Registration Certificate #78-АГ 049885 as of 6 November 2007.
Land Valuation
Hypothetical Value Indication of the freehold interest in the subject land plot
assuming that the documentation concerning changing the zoning is obtained, is:
US$977 305 000
Hypothetical Value Indication of the freehold interest in the subject land plot
assuming that all the legal permissions required for starting the construction works are
in place, is: US$1 058 853 000.
A more detailed overview is attached to this Report.
Special Reservation:
Please note that this report provides two different discount rates. We use the discount
rate of 26% to calculate the Market Value according to the situation as is today.
Discount rate of 23% is used in order to calculate the Hypothetical Value Indication
assuming that all the legal permissions for construction are in place.
Valuation Advisory
-4-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
A
INTRODUCTION
Valuation Advisory
-5-
Real Estate Consultants
Ducat Place III, Gasheka ul. 6
Moscow 125047
Phone+7 495 797 9600
Fax+7 495 797 9601
www.cushwake.com
Strictly Confidential - For Addressee Only
Morgal Investments LLC
Shpalernaya Street Office 21A,
Saint-Petersburg, 191015, Russia
For the attention of Mr. Barak Rosen
Our Ref:
#071121VAL
24th of March 2008
Dear Sir
Valuation of Land Plots of 239.71 ha in Total located on the intersection of
Pulkovskoe and Volkhonskoe highways in Saint Petersburg, Russia ("the
Property") for Morgal Investments LLC (“the Client”).
1
INSTRUCTIONS
1.1
Confirmation of Instructions
In accordance with your request we have inspected the above land plots (herein referred to as the
“Property”) and made all necessary enquiries to provide you with our Opinion as to Value under
assumed conditions of the assumed freehold interest in the Property.
1.2
Conflicts of Interest
We confirm that there are no conflicts of interest in our advising you on the value of the Property
under the assumed conditions as instructed.
1.3
Inspections
The Property was inspected externally on 28th of November 2007 by Konstantin Lebedev & Elena
Kolichev. No measurement survey has been carried out by Cushman & Wakefield Stiles &
Riabokobylko (“C&W S&R”). We have relied entirely on the site areas provided to us by the Client.
We have assumed that these are correct.
Valuation Advisory
-6-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
1.4
Background to the Valuation
In accordance with the information on the land areas provided to us by the Client, the Property
currently represents three land plots of 239.71 Ha in total located on the intersection of Pulkovskoe
and Volkhonskoe highways in Saint Petersburg, Russia.
As far as we understand the Property is represented by three land plots of 239.71 Ha in total, which
are zoned as “populated area lands”. The Client presented plans for developing a big residential
district including retail centres, community centres, educational facilities, sport centres as well as all
other necessary residential facilities on these land plots.
2
ASSUMPTIONS, DEPARTURES AND RESERVATIONS
We have prepared our valuation on the basis of the assumptions within our instructions detailed in
this report. In particular, unless you have told us otherwise, we have assumed:
Any mineral rights are excluded from the property
3
INSPECTION
We inspected the subjected land plots on 28 November 2007.
4
SOURCES OF INFORMATION
We have based our Valuation on our inspection of the Property and information supplied to us by
the Client and the results of our other enquiries.
5
GENERAL COMMENT
Our Report is derived from the analysis of recent market transactions, together with our market
knowledge derived from the Firm’s agency coverage.
A valuation is a prediction of price, not a guarantee and different Valuers can properly arrive at
different opinions of potential future worth.
We have made subjective judgements during our approach in arriving at our Valuation and whilst
we consider these to be both logical and appropriate they are not necessarily the same as would be
made by a purchaser.
The purpose of the valuation does not alter the approach to the valuation.
Valuation Advisory
-7-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Property values can change substantially, even over short periods of time, and so our opinion of
value could differ significantly if the date of valuation was to change. If you wish to rely on our
valuation as being valid on any other date you should consult us first.
Should you contemplate a sale, we strongly recommend that the property is given proper exposure
to the market. In a rapidly rising market, or in the case of a property with development potential,
the inclusion of a 'clawback' provision in the sale contract should also be considered, so that further
sums become payable if the property is quickly re-sold at a profit.
You should not rely on this report unless any reference to tenure, tenancies and legal title has been
verified as correct by your legal advisers.
Our Valuation is exclusive of any Value Added Tax.
6
VALUATION
6.1
Market Value
Subject to the contents of this Report and based on current values, we estimate the potential future
worth of the freehold interest in the Land, as of 28th of November 2007 based on the type of use.
The findings contained in our Report are based on calculations, conclusions and other information
obtained as a result of market research, on our expertise in the course of which we received certain
information.
We are of the opinion that the Hypothetical Value of the freehold interest in the subject land plot
detailed in Part B as of November 2007, assuming that the documentation concerning changing the
zoning is obtained is:
US$977 305 000
(NINE HUNDRED SEVENTY SEVEN MILLIONS THREE HUNDRED FIVE
THOUSAND US DOLLARS)
We are of the opinion that the Hypothetical Value Indication of the freehold interest in the subject
land plot detailed in Part B, as of 28 November 2007, assuming that all the necessary legal
permissions required for starting the construction works are in place, is:
US$1 058 853 000
(ONE BILLION FIFTY EIGHT MILLIONS EIGHT HUNDRED FIFTY THREE
THOUSAND US DOLLARS)
Valuation Advisory
-8-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
7
CONFIDENTIALITY
The contents of this Report are intended to be confidential to the addressees and for the specific
purpose stated. Consequently, and in accordance with current practice, no responsibility is accepted
to any other party in respect of the whole or any part of its contents. Before the Report or any part
of its contents are reproduced or referred to in any document, circular or statement or disclosed
orally to a third party, our written approval as to the form and context of such publication or
disclosure must first be obtained. For avoidance of doubt, such approval is required whether or not
this firm is referred to by name and whether or not our Report is combined with others.
The Report should only be reproduced, in accordance with any of the above requirements, in full
and including all of the assumptions and conditions pertaining thereto. No part of the Report shall
be reproduced in isolation.
8
DISCLOSURE AND PUBLICATION
We are aware and agree to the publication of our valuation report and the filing thereof in any
required filling under any security laws applicable in Israel.
Valuation Advisory
-9-
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Yours faithfully,
For and on behalf of Cushman & Wakefield
TIMOTHY MILLARD MRICS
Partner
Head of Advisory & Research
KONSTANTIN LEBEDEV
Director
ELENA KOLICHEV MBA
Consultant, Valuation Advisory
Valuation Advisory
- 10 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
B
PROPERTY SCHEDULE
Valuation Advisory
- 11 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
1
LOCATION
1.1
General
On the east the land plot
borders with the Pulkovskoe
highway, which changes its
name to Kievskoe highway in
the southern direction, in the
direction of south-west – Luga,
Pskov
towns,
Belorussia,
Estonia and Latvia.
On the north the land plot
borders with the territory of
Pulkovskaya
Astronomic
Observatory, the monument of
national
significance.
adjacent
territories
Observatory
horticultural
are
The
to
the
used
for
establishment
needs. The Observatory is
located at the highest point of
Pulkovskie heights. Pulkovo
Airport is situated in flatlands
behind them.
On the west there are former territories of agricultural lands which are planned to be used for
recreational zone. The Southern city cemetery is located three-four hundred meters away to the
west.
In the south the plot bounds with Pulkovo village and Volkhonskoe highway which connects
Pushkin town and Strelna village to the shore of Finsky Bay.
1.2
Communications
The Pulkovskoe highway is the highway of national significance – cargoes are shipped through this
highway in directions of Belorussia, Poland as well as to Baltic countries. Currently the highway is
Valuation Advisory
- 12 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
wide enough to provide lanes in both directions, however it is already planned to be enlarged. In
the future it is planned to be used as the main highway. Together with reconstruction of
Pulkovskoe highway, the interchange in the close proximity to Pulkovo-I Airport (till 2010), and
Volkhonskoe highway towards Pushkin town, it is also planned to construct a new road
interchanges – between Pulkovskoe and Volkhonskoe highways in particular; construct a new road
crossing Krasnoselskoe highway (till 2015) and a road to Pushkin town. Recently the works to
connect Encircling highway to the Pulkovskoe highway were accomplished.
Currently there are no long-term plans of city committees to build any main roads or streets
crossing the subject land plot.
We estimate that the time to drive from the subject land plot to the centre of Saint Petersburg is
about half an hour depending on traffic conditions. The time to drive to Pushkin town is about 1015 minutes.
There is a big interchange as well as terminal of public transportation heading to several directions
close to the border between the subject land plot and Pulkovskoe highway. There is a large public
transportation to Pushkin town, to Krasnoe Selo village (through Volkhonskoe highway) as well as
to Gatchina town. There is a quite convenient connection to the southern part of the city as well.
About three kilometres away from the subject land plot there is a railway towards south-west
direction from the Baltiysky railway station of the city. It is facing the direction of Gatchina, Luga
and Pskov towns. The nearest railway station Alexandrovskaya is situated 3.5 kilometres away from
the subject land plot.
Pulkovo Airport is located in a close proximity to the subject land plot. Pulkovo-I Airport is 7.5
kilometres away and Pulkovo-II – 7 kilometres.
To summarise, the site accessibility can currently be described as being satisfactory.
Valuation Advisory
- 13 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
2
DESCRIPTION
2.1
General
In accordance with the information on the subject land provided to us directly by the Client the
subject Property consists of 3 separate cadastral plots situated on the intersection of Pulkovskoe
and Volkhonskoe highways in Saint Petersburg (Cadastral No 78:14:7723B:25, Cadastral No
78:14:7723B:22 and Cadastral No 78:14:7723B:27 of 79.14, 77.46 and 83.11 ha correspondingly),
summarizing to total area of 239.71 ha. The subjected land plots are held freehold by the Client as
of 6th November 2007 and all zoned as “populated area lands”.
The land plot is situated in the valley of a smaller river,
the left tributary of the Pulkovka River. It is located on
the Pulkovskie heights in the southern part of Saint
Petersburg on the border of Moskovskiy administrative
district, in municipal district 47, on the former territory
of Tsvety LLC, which used to have greenhouses for
growing trees for the city’s needs.
Valuation Advisory
- 14 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Most part of the territory is cultivated with forest
plantations including fine woods such as oaks and ashtrees aging from 5 up to around 25 years old. Some
horticultural establishments are located on the territory
of the land plot as well. The rest part of the territory is
empty. There are three dilapidated non-residential
pieces of property on the land plots as well. Those are
held freehold by the Client. The properties are
registered in the real estate cadastre (Cadastral No
78:7723B:7:34, Cadastral No 78:7723B:7:35, Cadastral
No 78:7723B:7:36), have an address (Pulkovskoe
highway 103 letter “O”, “P” and “П” correspondingly)
and have a total area of 52.1, 219.5 and 52.1 square
metres correspondingly). According to the available
copies of “Certificate of State Registration of
Ownership” all the tree buildings are non-residential.
The building located at the address Pulkovskoe highway 103 letter “P” is a building of former
pumping station which previously was used to supply water for melioration of the greenhouses’
territory. It is located in the north-west part of the land plot, on the bank of a pond. Currently the
building is totally empty.
2.2
The Future Development Concept: “Planetograd”
Please note that the concept has been taken from the documentation provided by the Client
without any further feasibility check by C&W S&R.
Planetograd – (City of Planets), the inspiration for this project came from the nearby Pulkovskaya
observatory. This project represents a modern high quality residential quarter in Saint Petersburg
based on advanced designing principles, offering a convenient and high quality lifestyle, the future
of the city. The quality of life offered in this new urban project holding over two and half million
square meters is exceptional in Russia in general and in Saint Petersburg in particular. The main
focus was to create an environment for a full life, providing everything to fulfil the needs of the
inhabitants in: education, culture, shopping and sports.
Valuation Advisory
- 15 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Pulkovskaya observatory was established in 1833. It is now the central and main institute of cosmos
study in Russia also known in the professional world of cosmos study worldwide.
The idea of neighbourhood with Pulkovskaya observatory inspired “Y.A. Yashar Architects” to
design a new residential complex in a shape of Solar System. At the centre lies the sun, surrounded
by eight planets, representing eight smaller neighbourhoods according to the number of the planets
surrounding the Sun. According to the project each smaller neighbourhood of Planetograd will be
called on the name of a planet. Each neighbourhood will be holding 3 125 apartments, built around
the neighbourhood green zone of two Ha and a recreation centre in the shape of planet located in
the middle of the neighbourhood. The main public facilities such as four high schools, four
elementary schools, sport facilities, mall, entertainment centre, an expansive park and a big concert
hall in a shape of Sun are located in the middle of the whole region.
The central motif in the quarters design is the pedestrian. The main traffic system is green, a
peripheral park that connects the centres of the different neighbourhoods, with their parks, and all
are connected to the heart of the quarter in green walking routes, with no crossing roads.
The four-stair structures with their wide green background provide the whole quarter a pleasant and
personal atmosphere, with the central section being public, and as you move further away the
spaces become more and more private.
To the north of Planetograd projected a big green zone for extreme sports (0.3 Ha). The new
neighbourhood is planned to be full of parks, lakes, free space; it will be wide and airy.
Each district is planned to contain some amenities such as kinder gardens, after school educational
clubs, restaurants, cinemas, shopping galleries food courts as well. However most of the amenities
will be focused in the Sun region, in the middle of the whole neighbourhood. It is also planned to
construct the inside and outside sport centres (saunas, fitness centres, tennis courts, swimming
pools etc).
The streets in Planetograd are planned very wide and straight, which allows an easy and fast access
to all districts avoiding traffic jams. Moreover, as it was mentioned before, there is a pedestrian
access from each district to the centre with no crossroads which allows children to reach their
schools without crossing any road, which will decrease the possibility of accidents in the region.
As was said above the complex will consist of eight quite independent residential districts according
to the amount of the planets in the Solar System. This idea allows the developer to divide the
Valuation Advisory
- 16 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
project to eight smaller and independent ones, which will allow merging risks and investments. In
total it is planned to build 25 000 apartments. 31 250 parking lots will allow convenient access to
the whole complex, providing that there will never be any problems with parking space all over the
region.
As was mentioned above the subject land plot is located on the Pulkovskoe and Volkhonskoe
highways in Saint Petersburg. There is a good public transport connection between the land plot
and southern part of Saint Petersburg, Pushkin town and other towns in the region.
According to the Client and depending on the promulgation of the relevant legislation and
regulations, construction of Planetograd could commence in May 2009, with the first apartments
start to be sold to the end customer at the same time (May 2009).
2.2.1
Limitation conditions for the future construction
The request for limitations of the construction was received from Pulkovskaya observatory.
In order to decrease unfavourable factors disturbing the activity of the observatory there are several
requests that must be fulfilled:
•
the buildings in the complex should not be higher than 21.75 meters1;
•
there must not be new sources of concentrated emission of heat such as boiler pipe;
•
new premises must contain a reliable heat insulation to decrease the amount of warm air
coming from the buildings;
•
there must neither be vertical or horizontal strong sources of lights towards the direction of the
observatory, nor any illumination of the sky;
•
the total observatory main building dome illuminance would not get over 0.05 luxmeter;
•
there must be some green plantations in order to screen the light coming out of the windows
facing the observatory;
2.3
Site Area
According to documentation available to us the Property is represented by three land plots
extending to 239.71 ha in total.
1
According to the current planning the height of the buildings is 12 meters, which fulfils the limitation
Valuation Advisory
- 17 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
3
ENVIRONMENTAL CONSIDERATIONS
We have not carried out any investigations or tests, nor have been supplied with any information
from the owner or from any relevant expert that determines the presence or otherwise of pollution
or contaminative substances or any other land (including any ground water).
However, we would like to mention that there are several environmental issues that must be taken
into consideration:
•
The plot is located about 1.3 kilometres from the city garbage dump. This can affect the air
purity, especially while the dump is burning. However, this is only possible when the southeastern wind is blowing which happens in average 30 days annually. Moreover, at 1.3
kilometres the smell disperses. Moreover, according to the new development planning this
dump is planned to be removed from the place.
•
The eastern corner of the plot is 300 meters away from the southern city cemetery.
Considering all said above we would not expect there to be any outstanding environmental or
archaeological issues.
4
TENURE
As it was said above the Client has the freehold in all the mentioned land plots
•
cadastral number 78:14:7723B:25 containing 79.14 ha is held freehold according to the
“Certificate of State Registration of Ownership” #78-АГ 049881 as of 6th November 2007,
•
cadastral number 78:14:7723B:22 containing 77.45 ha is held freehold according to the
“Certificate of State Registration of Ownership” #78-АГ 049827 as of 6th November 2007,
•
cadastral number 78:14:7723B:27 containing 83.11 ha is held freehold according to the
“Certificate of State Registration of Ownership” #78-АГ 049882 as of 6th November 2007)
as well as the following non-residential pieces of property located on the subject land plots:
•
The Property cadastral number 78:7723B:7:34 containing 52.1 square meters is freehold by
Morgal Investments LLC starting from 17 September 2007 as stated in Ownership
Registration Certificate #78-АГ 049883 as of 6 November 2007.
•
The Property cadastral number 78:7723B:7:35 containing 219.5 square meters is freehold by
Morgal Investments LLC starting from 17 September 2007 as stated in Ownership
Registration Certificate #78-АГ 049884 as of 6 November 2007.
Valuation Advisory
- 18 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
The Property cadastral number 78:7723B:7:36 containing 52.1 square meters is freehold by
Morgal Investments LLC starting from 17 September 2007 as stated in Ownership
Registration Certificate #78-АГ 049885 as of 6 November 2007.
Valuation Advisory
- 19 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5
MARKET COMMENTARY
5.1
Brief Economy Overview
Property Forecasting GDP growth in Russia for 2007 has proved tricky, with the economics
ministry anticipating no more than 5.8% at the start of the year. It’s now clear that this was
pessimistic (at the end of August, growth stood at 7.7% YTD), and the full year figure is now
expected to come in at 7% or higher.
However, this will be the last year to break the 7% barrier for the foreseeable future, with 2008 set
to slow to 6.5%. The main driver of growth remains high oil prices, with investment levels and
private consumption expected to remain strong.
Inflation is still the fly in the ointment, with early October seeing the first admission by a member
of the government that the original 2007 target of 8% now unrealistic. The CPI index has risen
dramatically, with groceries particularly provoking the situation over the summer (when inflation
usually offers some small reprieve). September 2007 saw rampant growth of 0.8%, leaving overall
inflation for the first three quarters at 7.5% (vs. 7.2% for the same period in 2006), and revised
forecasts for the full year at 9 – 9.5%.
The CBR and the finance ministry have been fighting hard to control prices in the face of massive
investment inflow, but are constrained by concerns over appreciation of the ruble, and from Q3
action to counterbalance the global liquidity squeeze and the upcoming parliamentary and
presidential elections.
GDP/GDP growth/CPI
GDP, bln USD
GDP growth, %
CPI
16%
14%
1,391
12%
10%
985
8%
888
755
6%
592
4%
435
345
2%
0%
2002
2003
2004
2005
2006
2007F
2008F
Source: Ministry of Economic Development and Trade
Note: 2007 – forecasts amalgamated by C&W/S&R Research
Valuation Advisory
- 20 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.2
Residential Market Overview
5.2.1
General characteristics
Since 2002 Petersburg residential real estate market is characterized by annual increase in the
number of residential lodgings put into operation (diagram). The number of lodgings put into
operation in St. Petersburg in 2006 made up 2 376 thousand sq. m. (490 houses for 34 227 flats),
which is 2.5% more than in 2005.
Dynamics of the lodgings put into operation in different years
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
During 3 quarters of 2007 the number of residential lodgings put into operation made up about
1 330.3 thousand sq. m. All in all in 2007 about 2 450 thousand sq. m. of residential lodgings were
announced to be put into operation, which is 3% more than in 2006. For 2008 about 2.8-2.9 million
sq. m. of residential lodgings are forecasted to be put into operation (the growth rate compared
with the previous year is 16%).
Currently there is a large number of existing projects ready for development of huge territories for
residential and multifunctional (mixed) construction. Development branch is characterized by
visible concentration: small, financially unstable companies leave the market and sell their plots to
larger companies.
According to the structure of the residential lodgings, put into operation in 2007, the largest part
(according to the area) is represented by “economic” and “comfort” classes (85%). The share of the
Valuation Advisory
- 21 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
elite residential lodgings is only 2%. This is due to the fact, that elite objects are usually low and
unique and their area is rather small (diagram).
Structure of the lodgings, put into operation in 2007 according to
the classes
(according to the area)
business
elite 13%
2%
economic and
comfort
85%
5.2.2
Classification
The supply in the residential market is differentiated mostly according to the price. Depending on
the price range per sq. m., four main classes of residential real estate can be singled out: elite,
business, comfort and economic-class.
Classification, given below, concerns the primary market and reflects the average prices, actual
during all the stages of building-construction.
Comparative characteristics of residential real estate according to the classes
Criteria
Elite
Business
Comfort
Economic
Location
Central parts of the
city, similar social
surroundings
Good location
of the object
– not
necessarily the
centre of the
city but a
prestigious
district,
preferable
similar
surroundings,
good
transport
accessibility,
proximity to
Can be located
practically in any
district. The most
widely spread
districts are
Primorsky,
Moskovskiy,
Vyborgsky and
Nevsky.
Proximity to the
metro, similar
surroundings.
Location in huge
residential areas
out of town and
in the suburbs
Valuation Advisory
- 22 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
the metro.
Level of service
Existence of a service
company plus
additional services
inside the house
(social infrastructure:
cafe, sports centre,
laundry and etc.)
The level of
service may be
high or lower,
but its
existence is
obligatory
Existence of a
minimal service
Additional
services are
usually absent
Flat planning
Brick-solid house
(brick). Free
planning, ceiling
height from 3 m,
number of lavatories:
one per 1 bedroom
Brick-solid
(brick) house.
Good flatplanning, large
kitchens
(from 12-15
sq. m.) and
bathrooms,
ceiling height
is not less
than 2,8 m
Brick-solid (brick)
house. Good flatplanning, large
kitchen and
bathroom
compared with
the typical ones
Residential
houses of a panel
type without
possibilities of
free planning.
Average area of a
one-room flat –
35-45 sq. m.; 2room flat – 50-60
sq. m.; 3-room
flat – from 70 sq.
m.
Parking, number
of car places
Guarded parking
(underground) with
not less that 1 car
place per 1
apartment. For
super-elite flats – not
less than 2.
Existence of a
guarded
parking (not
necessarily a
built-in
garage)
Existence of at
least one open
parking near the
house
Can be one
ground guarded
parking – 1 car
place per 1 flat
Guard
24/7 guard-post and
special safety system
24/7 guard
concierge
concierge (may
be)
Technical
equipment of the
building
Soundless speed-lifts
made by OTIS,
KONE or other
foreign producer;
autonomic boiler
house, providing hot
water supply and
heating; multi-stage
cold water-cleaning;
air-ejector ventilation;
wooden glasspackages; possibility
of installation of a
conditioning system
and satellite TV,
Internet, telephone
High technical
equipment of
the building.
Compulsory
parameter –
autonomic
public utilities
– watercleaning and a
boiler house.
High technical
equipment of the
house
May be minimal
Price level, $ per
sq. m.
From $4 000 per sq.
m.
From $3 000
to $5 000 per
sq. m.
From $2 300 to
$3 000 per sq. m.
Up to $2 500 per
sq. m.
Valuation Advisory
- 23 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.2.3
Residential market potential
The number of permanent population of St. Petersburg is 4 600 000; the number of temporary
population is around 250 000. According to the development strategy, approved by the General
Plan of St. Petersburg, it is planned to increase the social residential norm up to the European one
– 30 sq. m. per one permanent citizen of St. Petersburg and 10-12 sq. m. per one temporary one.
According to the forecast the number of permanent population will be 4 800 thousand people in
2015 and the number of temporary population – 500 000 people due to labour migration.
Taking into consideration the existing indexes of the housing stock, the number of population and
the planned accommodation norm, the necessary size of the housing stock must comprise not less
than 150 000 000 sq. m. in 2015 (4 800 000 х 30 + 500 000 х 12 = 150 000 000 sq. m.).
2007
2015 (Forecast)
Permanent population
4 600 000
4 800 000
Temporary citizens
250 000
500 000
Total housing stock
104 686 000 sq. m.
150 000 000 sq. m.
Total housing stock per citizen
21.6 sq. m.
28.3 sq. m.
Thus the need in additional accommodation in 2015 will comprise 45 314 300 sq. m. (150 000 000
– 104 685 700).
Besides the enlargement of the size of the lodgings per 1 citizen, the need in new accommodation
will grow due to the following tendencies:
•
Settling apart old and wreck fond – 5 878 100 sq. m.
•
Settling apart dormitories since 2011 – 1 731 900 sq. m.
•
Settling apart of the first mass series (under the program of territory renovation) – around
5 000 000 sq. m.
Increase in the need of new lodgings
Increase in the norm of the residential supply
45 314 300
Settling apart of old and wreck fond
5 878 100
Settling apart “khruschevki
5 000 000
Settling apart dormitories
1 731 900
Valuation Advisory
- 24 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Total need in 2015
57 924 300
Thus the total need in new accommodation up to 2015 may be estimated at the level of 57 924 000
sq. m.
It’s necessary to bear in mind that the solvent market demand differs greatly from the calculated
need. At present it’s low, but it will grow due to several factors:
Salary growth
According to the official information of Petersburgkomstat, average monthly salary is 15 488 RUR.
Taking into account bonuses and the so-called “grey” salaries, average monthly income of those,
working in a off-budget sphere, makes up 23 440 RUR (According to ANT-Management).
Taking into consideration the salary of those, working in the budget sector, (around 18% of the
total number of employed), an average weighted salary will be 22 000 RUR. The number of people,
working in the economics sector, is around 2 400 000 people (49% of the total number of the
whole population).
Thus, an average income per family (2.7 people) in St. Petersburg is around 29 100 RUR. The
highest level of savings, left for acquisition of some accommodation after the minimal basket of
goods has been bought, is not more than 12 500 RUR. This sum does not give an opportunity to
buy a flat under existing mortgage programs or to save the necessary amount for enlarging the size
of an apartment to the European norm.
This is why the necessary condition for the growth of a solvent demand is further growth of real
money income of people and development of different mortgage programs.
During 2003-2007 average yearly growth rate of real money income of the population made up
13.2% pa. If such a tendency continues, in 2015 an average income per employee will be 63 000
RUR, in other words it will reach the level of the most developed European countries (England,
Germany, Austria, Sweden, Finland, Norway) and the USA. But this variant is very optimistic. If an
average salary reaches 43 000 RUR, it will still be lower than the average level of income in Europe
but still will make the mortgage development available.
Mortgage development
Valuation Advisory
- 25 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Development of the mortgage market in St. Petersburg is as follows:
2004
2005
2006
2007 (forecast)
Amount of credits
1 400
4 356
11 081
-
Volume (in billions of RUR)
1.2
6
19.2
32
Currently, the primary market takes about 30% in mortgage credits. In 2006 the volume of sales
was 2.7 million sq. m. (about 130 billion RUR). Thus, not more than 4% of new accommodations
were acquired using mortgages in 2006; the same index in 2007 will be around 10-11%.
Till 2007, the share of mortgage credits in the primary market will be 50%.
Growth of supply volumes
The volume of supply till 2015 can be approximately estimated as 34.3 million sq. m. (see below):
Huge projects in residential areas
1 900 000
Territory development projects
14 700 000
Renovation of the mass districts (1/2 of the
announced number of the districts)
6 500 000
Other projects
11 200 000
Total
34 300 000
Conclusion: residential market won’t be saturated till 2015, even if the construction plans, stated
above, will be fulfilled. According to our forecasts, in 2008-2009 the demand will exceed the supply
in the market. In 2010-2011 sales in the projects of complex territory exploration will be opened
(Kudrovo, Evrograd, Ruchyi). The same period will be marked by a sale’s pick in Slavyanka,
Baltiyskaya Zhemchuzhina, and Severnaya Dolina, which will cause temporary over-production in
the market. But in 2012 the situation will improve and the volume of supply will correspond to the
volume of demand. Further market development will be slowed down due to the need of
development of new transport and engineering infrastructure for the residential districts. As a result
the prime cost will grow which will lead to decrease in profitability of the sector.
5.2.4
Economic Class
5.2.4.1
Supply Analysis
Standard accommodations take a big part in the market and head for citizens with average incomes.
This real estate category has the largest weight according to the number of sq. m. in the housing
Valuation Advisory
- 26 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
stock. The Buyer here is more sensitive to the price than in any other category. Panel and bricksolid houses with small flats in out-of-town residential areas belong to standard accommodations.
Sometimes such flats are offered with a cheap decoration using native materials.
In the structure of the whole housing stock, «economic-class» has a prominent share of about 60%,
but its share is decreasing. It is due to the fact, that one more real estate segment has recently
appeared – «comfort» class, differing from the standard accommodations by a better characteristics
of the houses (mainly brick-solid house) and the services provided (concierge, guard).
Location geography
The most popular for “economic” class houses are huge residential districts of the city, such as:
Primorsky, Nevsky and Kalininsky districts.
Structure of the existing supply of "economic" class residential projects in
the primary market (according to the number of the objects)
Petrogradskiy
Krasnoselskiy
Kirovskiy
Krasnogvardejskiy
Vyborgskiy
Moskovskiy
Kalininskiy
Frunzenskiy
Nevskiy
Primorskiy
0
5
10
15
20
25
30
According to the analysis of the existing supply, average weighted apartment size of “economic” is
60 sq. m. In the table below there are average apartment sizes in “economic” class depending on
the number of the rooms.
Average apartment sizes in “economic” class according to amount of rooms
Amount of apartments
Valuation Advisory
Area in sq. m.
- 27 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
1 room flat
37-50
2 room flat
55-85
3 room flat
65-125
Main developers
The leaders in the sector of “economic” class accommodation development are “LenSpecSMU”
(10%), “Stroymontazh” (8%) and “Petersburgstroyskanska” (7%). Around 31% of the “economic”
class projects are developed by the companies, represented in this sector by single project.
Shares of the main developers of the "economic" class residential
accommodations
5.2.4.2
LenSpecSMU
Strojmontazh
Peterburgstroy Skanska
Tovarishestvo Dolevogo Stroitelstva
Garant
Dalpiterskiy
Arsenal
Lempromstroy
GUVD po SPb I Lenoblasti
Severniy
Dalpiterstroy
Gorodskaya Domstroitelnaya Kompaniya
Geron
Prosee
Demand analysis
After the 2006 boom, the first three quarters of 2007 showed a quite reserved demand on standard
accommodations. The sellers, trying not to make the prices fall, offered their clients different
discounts, bonuses and lowered the mortgage percentage. The prices grew slowly. But in Q4 the
demand activated and is now continuing to grow.
Buyer’s characteristics
Valuation Advisory
- 28 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
Income level per family –$2 600-$3 000 in average;
•
Type of Activity – in general, young specialists, who can afford buying accommodations or
people with stable incomes, who want to improve their living conditions (to increase the size
of the flat);
•
Age – generally young people 25-30 years;
•
Family size – one or no children.
Buyer’s preferences
•
Location – different, mainly out-of-town residential areas and suburbs. The further from the
city centre – the cheaper;
•
House characteristics – panel houses. Sometimes such flats are offered with a cheap
decoration;
•
Preferable flat size: 1 and 3-room flats are in great demand. An optimal size of a 1-room flat is
40 sq. m., of a 3-room flat - 80 sq. m.;
•
A good way of involving a client into a deal is a flexible scheme of the deal. Here possible
credits, bonuses and down payments play a very important role;
As for the geography, the most popular district is Kalininskiy as well as Primorskiy,
Krasnogvardeyskiy and Moskovskiy districts.
Sales’ rate
According to the analysis of existing “economic” class objects, it has been estimated that about 4%
of the total number of all the flats are realized every month. But it’s worth mentioning that this
figure is true only for typical standard objects. If a huge residential complex of “economic” class is
announced, sales’ rates can be lower.
Sales rates of “economic” class accommodations (percentage of sales from the total number of flats per month)
5.2.4.3
Class
Min
Max
Average
“Economic”
3.4%
3.7%
4.1%
Price characteristics
Price rates on residential objects depend mainly on the location. Average price of accommodation
in the “economic” class comprises $2 320 per sq. m.
Valuation Advisory
- 29 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Average prices for “economic” class accommodation according to the regions
District
Vyborgskiy
Average Price
($/sq. m.)
2 604
Kurortniy
2 480
Kirovskiy
2 460
Moskovskiy
2 284
Krasnoselskiy
2 280
Primorskiy
2 264
Kalininskiy
2 256
Nevskiy
2 212
Frunzenskiy
2 212
Krasnogvardeyskiy
2 160
The highest prices in this sector are observed in the districts, approaching the centre of the city,
such as Vyborgskiy and Moskovskiy as well as in a suburban district of St. Petersburg – Kurortniy.
Factors, influencing price growth and price growth forecast
In 2008 and 2009 demand growth in the market won’t be able to follow income growth and
mortgage development;
•
Despite temporary “pace” and supply growth, prices on accommodations will start growing in
the middle of 2008 and this growth will make up about 12-15% pa;
•
2009 will show the highest growth: 15-20%;
•
In 2010 price growth will slow down because sales in new huge projects of territory
development will start and it’ll make up about 5-8%;
•
In 2011 new projects instead of “khruschevky” districts will appear, price growth will stop or
go down, but not more than 3-5%;
•
Further prices will continue to grow 8-10%.
Accommodation growth rates forecast
2008
2009
2010
2011
after 2011
12-15%
15-20%
5-8%
3-5%
8-10%
Valuation Advisory
- 30 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.2.4.4
Tendencies and forecasts
•
Active development of mortgage credits: currently the mortgages may influence the sales
increase up to 10-15%, but in future 50% of buyers will use credits. According to our
forecasts, during 2008 the number of mortgage deals will increase twice;
•
Demand on 1-room and studio apartments will go down (this is due to income growth and
mortgage programs development);
•
Large territories development will continue; new infrastructure and integrated social
environment will be created;
•
Accommodation rates growth will slow down starting from 2010.
5.2.5
Comfort Class
5.2.5.1
Supply Analysis
“Comfort” class may be marked as a new one in the existing residential real estate classification.
This class takes an intermediate place between standard accommodations and “business” class. It
differs from standard accommodations in better quality characteristics of the houses and in higher
quality services provided.
Location geography
According to the location, the largest supply can be found in Vyborgskiy, Kalininskiy and
Primorskiy districts. The least supply is a characteristic feature of Vasileostroivskiy, Frunzenskiy,
Krasnoselskiy and Krasnogvardeyskiy districts.
Valuation Advisory
- 31 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Structure of the existing supply of "comfort" class residential objects in the primary
market (according to the number of the objects)
Vasileostrovskiy
Frunzenskiy
Krasnoselskiy
Krasnogvardejskiy
Nevskiy
Moskovskiy
Kirovskiy
Primorskiy
Kalininskiy
Vyborgskiy
0
2
4
6
8
10
12
14
16
Analyzing existing supply, we may say, that an average weighted size of an apartment in “comfort”
class houses is about 59 sq. m.
Average apartment size in “comfort” class according to amount of rooms
Amount of apartments
Area in sq. m.
1 room flat
35-60
2 room flat
55-80
3 room flat
80-120
4 room flat
130-185
Main developers
The leaders of Q3 2007 in this sector are the following companies: «LenSpecSMU» (15.4%) and
LEK Estate (12.2%), Severniy Gorod. About 21% of all the projects are realized by companies,
represented in this sector by single projects.
Valuation Advisory
- 32 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Shares of the main developers of "comfort" class residential accommodations
LenSpecSMU
LEK Isteit
Severny Gorod
InKorStroy-58
GUVD po SPb I Lenoblasti
131 Kvartirno-Ekspluatacionnoe Upravlenie GlavKEU MO RF
Holdingovaya Stroitelnaya Kompaniya-2
PetroStroyBusinessInvest
UIT Lentek
5.2.5.2
Demand analysis
In “comfort” class as well as in “economic” class, the demand was rather “calm” during the whole
year, it livened up only in Q4 2007.
Buyer’s characteristics
Buyer’s Characteristics in “comfort” class differs from the one in “economic” class only by the
average income per family, that can be 5-10% higher but this criteria can be called “relative”
because of new mortgage programs.
Buyer’s preferences
•
Location – could locate in any district (more widely spread are Primorskiy, Moskovskiy,
Vyborgskiy and Nevskiy), proximity to the metro station, similar surroundings;
•
House characteristics – brick-solid houses, good apartment-planning, big kitchen and
bathroom;
•
Preferable flat size: the highest demand is on 1 and 2-room apartments of middle sizes.
•
Demand on residential real estate of “comfort” class is similar to the one of the “economic”
class. Quite popular are Primorskiy, Kalininsky, Vyborgskiy, Moskovskiy districts and
Bolshevikov Prospect.
Valuation Advisory
- 33 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Sales’ rate
According to the sales’ rates in this sector, the number of sold apartments in already existing
complexes depends on the total number of apartments. The more flats there are in the
house/complex, the bigger is the number of flats sold every month. On average, about 4% of
apartments are sold.
Sales rates of “comfort” class accommodations (percentage of sales from the total number of flats per month)
Class
Min
Max
Average
“Comfort”
2.4%
8.2%
4.2%
Parking
There is usually an open parking near “comfort” class buildings, sometimes there can be an
underground one.
5.2.5.3
Price characteristics
Price rates on residential objects depend mainly on their location. Average price of accommodation
in “comfort” class comprises $2 605 per sq. m.
Average prices for “comfort” class accommodation according to the regions
District
Valuation Advisory
Moskovskiy
Average Price
($/sq. m.)
2 840
Vasileostrovskiy
2 800
Vyborgskiy
2 800
Kirovskiy
2 760
Primorskiy
2 700
Kalininskiy
2 640
Kurortniy
2 600
Krasnogvardeyskiy
2 520
Nevskiy
2 420
Krasnoselskiy
2 320
Frunzenskiy
2 080
- 34 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
The highest prices are in Moskovskiy, Vasileostrovskiy and Vyborgskiy districts. Remote districts,
such as Frunzenskiy, Krasnoselskiy and Nevskiy are characterized by lower prices.
As there are practically no differences between “economic” and “comfort” classes, price growth
rates will be the same (see above).
5.2.5.4
Tendencies and forecasts
Similar to “economic” class (see above).
5.2.6
Business Class
5.2.6.1
Supply Analysis
In 2007 about 328 700 sq. m. of residential objects of “business” class were put into operation.
About 13% of announced objects were postponed to 2008. Therefore we may expect that around
415 500 sq. m. of accommodations will come to the market in 2008.
List of residential objects in “business” class announced for 2008
Name
District
Address
Date of putting
into operation
Severniy Palazzo
Vasileostrovskiy
17-line V.O., 14 А
Q4 2008
Imperial
Moskovskiy
Kievskaya St/
Moskovskiy Pr.
1 stage - Q2 2008,
2 stage - Q4 2008,
3 stage - Q3 2009
Crystal
Vyborgskiy
Institutskiy Prospect, 11
Q3 2008
Morskaya Rapsodiya
Vasileostrovskiy
Nakhimov St/
Galernogo Pr.
Q1 2008
Olimpik
Krasnogvardeyskiy
Khasanskaya St, 10
Q4 2008
Petrogradskiy etalon
Petrogradskiy
Petrozavodskaya St
Q3 2008
Grazhdanka City-2
Kalininskiy
Vavilovy St/Nauki Pr.
Q1 2008
Graf Orlov
Moskovskiy
Moskovskiy Pr, 181
1 stage - Q3 2008,
2 stage - Q3 2008,
3 stage - Q2 2009
Family House
Vyborgskiy
Kostromskoy Pr, 7
Q1 2008
Finansist
Vasileostrovskiy
27-line V.O.
Q4 2008
Non
Vyborgskiy
Yaroslavskiy Prt, 95
Q12008
Non
Kalininskiy
Komsomolskaya St, 1
Q4 2008
Non
Vyborgskiy
Kostromskoy Pr, 71
Q2 2008
Non
Kurortniy
Dubkovskoye highway/
Dubkovskaya St
Q1 2008
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Prlovskiy Kaskad
Vyborgskiy
Afonskaya St
Q3 2008
Imatra
Petrogradskiy
Maliy pr. P.C., 30
Q2 2008
Dacha Lanskih
Vyborgskiy
Engelsa pr. 4
Q1 2008
Van-Viteli
Vasileostrovskiy
10-line V.О., 17
Q2 2008
Non
Frunsenskiy
Turku St/
Belgradskaya St
Q1 2008
Non
Nevskiy
Pyatiletok pr, 7
Q1 2008
Continental
Moskovskiy
Krasnoputilovskaya St
Q3 2008
Grand Capital
Primorskiy
Lanskaya St / Matrosa
Zheleznyaka St
Q4 2008
Pavlovskiy Usadby
Pushkinskiy
Pavlovsk, Pervogo Maya
St.
Q2 2008
Manhattan
Kirovskiy
Veteranov pr./
Novatorov boulevard
Q12008
Zvezdniy
Moskovskiy
Kosmonavtov pr./
Ordzhonikidze St
Q2 2008
Dom s mansardoy
Petrogradskiy
Zelenina St./ Maliy pr.
Q2 2008
De Luxe
Vasileostrovskiy
4-line V.O, 41-43
2008
Non
Vasileostrovskiy
Maliy pr./9-line V. O.,
76
2008
Geography of supply
Residential objects of “business” class are spread around the city. Nevertheless some general
characteristics of this class can yet be identified.
The most typical zone for allocation of “business” class accommodations
Primorskiy district
Quite a prestigious part of the city. From the houses, built along
Primorskiy Prospect, you can see Finish bay, Vasilyevskiy and
Elaginy islands. In Kolomyagi (a district, which has never been
considered prestigious) cottage and townhouse construction is very
active now – that’s why this district is quite popular now.
Vyborgskiy district
Vyborgskiy side, Vyborgskaya metro station, a district from Perviy
Murinskiy to Severniy prospects (green zones of Udelniy park and
Sosnovka). Location next to“Ozerki” metro station is very popular
as well.
Krasnogvardeyskiy district
District of 8-9 Maloy Okhty, situated between Sverdlovskaya
embankment, Novocherkasskiy prospect, Respublikanskaya St and
Perevoznoy passage.
Moskovskiy district
Location near Moskovskaya and Park Pobedy metro stations,
district of Eastern Prospect of Yuriy Gagarin, where active
development of residential projects is being carried out (especially
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
near Zvezdnaya metro station); Chernyshevskogo Square,
Aviatsionnaya St, Altayskaya, Tipanova, Lensoveta streets.
According to the number of “business” class projects under construction, the most popular
districts for “business” class houses are Vasileostrovskiy (24%), Vyborgskiy (19%), Petrogradskiy
(15%) and Moskovskiy (12%).
Strucutre of existing supply of "business" class residential objects in the primary
market (acording to the number of the objects)
Admiraltejskiy
Kirovskiy
Frunzenskiy
Central
Primorskiy
Petrogradskiy
Vasileostrovskiy
0
5
10
15
20
25
30
Taking into account some peculiarities of central parts of the city, existing projects of “business”
class and those under construction are usually low-storied houses (6-7 stores) with a small number
of apartments (20-40); huge projects are represented only in the suburbs.
“Business” class houses should be made of brick or monolith since panel material is traditionally
considered as construction material for the “economic” class accommodation.
Infrastructure
Infrastructure plays a very important role in the development of “business” class accommodations.
Residential complexes here are a part of a developed infrastructure. Depending on the scope of the
project, fitness clubs, office centres and children playgrounds may be located on the territory of the
complex.
Valuation Advisory
- 37 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
In single houses the infrastructure is limited to commercial premises on the ground floors
(restaurants, offices, shops) and premises for concierges.
Main developers
Among large developers of “business” class accommodations, the following companies may be
named: «LEK», «LenSpecSMU» holding, PB «Nevskiy Sindikat», «Stroymontazh» (Mirax Group).
In Q3 2007 the leader in this sector was «LEK» company, which has completed 40% of all the
projects put into operation during 2007
Shares of the main developers of "business" class accommodations
LEK Isteit
Severo-Zapadnaya Finansovo-Stroitelnaya Gruppa
Raduga
Kolomyagi Retro
LenSpecSMU
OAO Saint Peterburgskoe Gruzovoe Avtotransportnoe Predpriyatie No49
Severo-Zapadniy regionalniy centre po delam GO CHS I likvidacii Stihiynyh bedstviy
Byliny
Voenno-Transportniy Universitet Zheleznodorozhnyh voisk RF
Atlantik
Others
A smaller number of developers work in “business” class segment than in “standard” segment, but
much more than in the “elite” one. The level of competition may be characterized as high. About
17% of all the projects in this sector are developed by companies, represented in this sector by
single project.
Valuation Advisory
- 38 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.2.6.2
Demand analysis
According to price characteristics, demand on “business” class apartments is less flexible than in
“standard” sector, but more flexible than in “elite” sector. However, in such characteristics as
location and quality it may be identified as flexible (especially compared with standard
accommodations).
Term of exposition of a “business” class apartment comprises from 1 month to 1 year.
Buyer’s characteristics
•
Income rate per family – from $8 000 per month;
•
Type of activity – owners of small businesses, middle class managers of large companies,
highly-paid specialists;
•
Age – in general 30 to 45 years old;
•
Family size – from 2 to 4 people.
Buyer’s preferences
•
Location – accommodations near office or metro station (5-15 minutes walk);
•
Preferable apartment size: 2 and 3 room apartments with subsidiary premises of the total area
65 and 90 sq. m. correspondingly. Average weighted area of an apartment in “business” class
houses makes up 68 sq. m.;
•
Subsidiary premises – kitchen size from 12 to 15 sq. m., ceiling height – from 2.7 metres.
Balcony, terrace or loggia is a must;
•
Parking place – obligatory;
•
Security in place;
•
Well-appointed adjacent territory.
Security and parking, especially an underground one, make “business” class apartments more
attractive. Market players admit that according to the quality of engineering systems and a number
of services provided new residential objects have become similar and soundless lifts or homephones are taken as an essential part of a quality house. The accent is now being shifted to the
equipment of adjacent territories, which is also a factor of a project’s success.
Valuation Advisory
- 39 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
After-sales services can play a big role in involving a client into buying “business” class apartments
as huge developers have their own operation services. These additional preferences are considered
to be perspective, however meanwhile there are different problems currently unsolved.
Demand characteristics
According to the results of a survey among “business” class apartment buyers, main demand falls
onto apartments of the total area of 70 to 200 sq. m., at that only 38% would prefer to buy an
apartment between 100 and 150 sq. m. There is no demand on apartments more that 200 sq. m.
Business class buyers' preferences according to the area of an appartment
Less than 70 sq. m.
70 - 100 sq. m.
100 - 150 sq. m.
150 - 200 sq. m.
The structure of demand according to the type of an apartment (depending on the number of
rooms) 3 and 4-room apartments have the highest share of 78.5%.
Business class buyers' preferences according to the number of rooms in an
appartment
Valuation Advisory
1 room apartment
2 room apartment
3 room apartment
4 room apartment
- 40 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Around 72.5% of respondents think that an apartment should have a balcony and one is really
enough. Only 1.5% would like to have 2 balconies and for 18% of respondents a balcony is not a
necessary condition when acquiring an apartment.
Business class buyers' preferences according to the
existence of a balcony
No
Yes, one
Yes, two
About 45% of potential “business” class apartment buyers prefer apartments with park or green
lanes view, about 36% – overlooking some urban panoramas and architecture.
Business class buyers' preferences according to the landscape characteristics of
an appartment
Other
Greenery
Quiet backyard
Urban landscape, architecture
Neva
Bay
Water (rivers, canals, lakes, ponds)
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
Infrastructure
For potential buyers of “business” class apartments it is important to have a developed
surroundings infrastructure. Among additional objects of infrastructure, according, to the survey,
are cafes and fitness clubs in the complex or near it.
Valuation Advisory
- 41 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Buyers' preferences according to the infrastructure objects
Caffe
GYM
Swimming pool
Sauna
Fitness centre
Cosmetical centre
Retail centre
Medical center
Kindergarten
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
According to the opinion of potential buyers a “business” class house should contain concierge
services as well as 24/7 security services. 25% of respondents would like professional management
companies to be drawn to the house operation.
Buyers' preferences according to the in-house services provided
Laundry services, dry cleaning
Cleaning services
Professional Operating Company
Secured parking
Concierge
Tw enty-four-hour security
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00%
Sales’ rate
As “business” class houses are also similar in their sizes, it is possible to find some kind of relation
between sales rates and the total number of apartments. According to the analysis made, about
3.6% of “business” class apartments are sold every month.
Sales rates of “comfort” class accommodations (percentage of sales from the total number of flats per month)
Valuation Advisory
- 42 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Class
Min
Max
Average
“Business”
2%
5.5%
3.6%
When larger projects are developed, sales rates can vary significantly.
Parking
According to the classification of “business” class accommodation the presence of a secured
parking is a necessary criterion, ideally – an underground parking. However, according to the survey
only 41% of the respondents talk about its necessity. The cost of a parking place depends on the
type of parking. The average cost of an underground parking place amounts to $28 000 up to
$60 000, making an average of $42 500 per parking place, the cost of an uncovered secured parking
place amounts to $24 000-$50 000, on average $32 000 per parking place. Most respondents are
ready to buy a parking place, but not to rent it.
From the point of view of parking places area its minimum size is fixed by SNIP and amounts to
11.5 sq. m. (2.3*5m). Its maximum size is not regulated and is determined by a developer and also
by objective reasons (column pitch). The optimal size of a parking place amounts to 18 sq. m.
(3*6m).
5.2.6.3
Price characteristics
Price rates on residential objects depend mainly on their location. Average price of accommodation
in “business” class comprises $3 520 per sq. m. The highest prices are in Petrogradskiy district (the
level is to the lowest level of the elite segment). The lowest prices are in the least popular districts,
such as Krasnoselskiy and Nevskiy.
In the table average prices on apartments in “business” class accommodation are presented
according to districts.
Average prices for “business” class accommodation according to the regions
District
Valuation Advisory
Petrogradskiy
Average Price
($/sq. m.)
4 310
Krasnogvardeyskiy
3 760
Frunzenskiy
3 600
- 43 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Kalininskiy
3 555
Moskovskiy
3 515
Vasileostrovskiy
3 475
Kirovskiy
3 460
Primorskiy
3 410
Vyborgskiy
3 355
Kurortniy
3 225
Nevskiy
3 115
The price for apartments in the “business” class residential building may vary significantly
depending on the floor and view. In “business” class residential buildings there is often the supply
of a few flats which refer to elite class according to their cost and view characteristics, f.e.
penthouses and apartments on the upper floors with panoramic views. Analyzing the relation of the
cost of apartment to the floor it is situated on we found out that the difference between the ground
and the upper floors may vary from 15% to 100%; in some cases it can be 200% depending on the
type characteristics.
Factors, influencing price growth and price growth forecast
Over 2006 the apartment price increase for the considered class has amounted to more than 100%.
Since the end of autumn 2006 the price increase on accommodation has stabilized. Starting from
beginning of 2007 the price increase has amounted to 8-10%.
Currently supply and demand in business-class residential real estate segment are approximately
balanced. Further increase of demand will take place at the expense of strengthening of the average
class, increasing the payment level of high qualified specialists and mortgage development. In
intermediate perspective the increase of demand will be covered by supply of building additional
spaces, redevelopment of the territories of St. Petersburg’s industrial district and renovation of
dwelling quarters of the first mass series; therefore in intermediate perspective the price increase,
according to our data, will insignificantly exceed the inflation increase (table).
Accommodation growth rates forecast
2008
2009
2010
2011
2012
8-10%
7-8%
6-7%
5%
5%
Valuation Advisory
- 44 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
However, there could be a more significant rate growth (30-50% more than presented in the table)
on certain objects built in non-industrial area, walking distance from the metro stations, in a green
area, close to the city centre, due to essential decrease of such objects during the next 2-3 years.
5.2.6.4
Tendencies and forecasts
•
Reclamation of large territories including coastal ones will continue; residential as well as
multifunctional complexes will be built on those territories;
•
Stabilization of prices on “business” class apartment is forecasted, the price increase will
insignificantly exceed the inflation;
•
Decrease of amount of “business” class buildings built in Vyborgskiy and Primorskiy districts
will take place, due to the growing difficulty of finding suitable locations;
•
The most attractive for a consumer will become supply of apartments situated in the quarters
fully built by the same building company with developed infrastructure;
•
The tendency of developing mortgage programs will go on.
5.2.7
Elite Class
5.2.7.1
Supply Analysis
In 2007 about 56 000 sq. m. (460 apartments) of elite accommodation were put into operation.
There is a definite deficit of supply of elite objects as from geographical as from characteristical
point of view. In 2007 approximately 10% of objects had their delivery terms postponed. In 2008 it
Number of elite accommodation forecasted to put into operation in 2008 is about 140 000 sq. m.
(1 200 apartments) taking into consideration the postponing terms. The forecasted increase of
projected accommodation is due to the tendency of transfer of dwelling objects from central to
further districts, where larger projects are possible.
List of residential objects in “elite” class announced for 2008
Valuation Advisory
- 45 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Name
District
Address
Date of putting into
operation
Non
Petrogradskiy
37-43 Morskoy Ave.
2008
Non
Central
1a Tverskaya St.
Q1 2008
Silver Mirrors
Petrogradskiy
Kamenoostrovsky Ave/
Divenskaya St.
1st stage - Q1 2008,
2nd stage - Q2 2008,
3rd stage - Q4 2008
Parade Quarters
Central
Kirochnaya St./
Rdishchev St. /
Vilensky Ave. /
Paradnaya St.
Q1 2008
Krestovsky Crystals
building “Malahit”
Petrogradskiy
5,7,9 Morskoy Ave.
Q2 2008
Aston Grafftio
Petrogradskiy
5 Grafftio St.
Q2 2008
Krestovsky Crystals
building “Lazurit”
Petrogradskiy
20 Konstantinovsky
Ave.
Q2 2008
Ideal World
Petrogradskiy
27B Zhdanovskaya St.
Q2 2008
House by the Sea
Petrogradskiy
74 Martynova Quay
Q2 2008
Diadema
Petrogradskiy
37 B Pr. Popov Ave.
Q3 2008
Premier Palace
Petrogradskiy
Admiral Lazarev Quay
Q1 –Q3 2008
Shuvalovsky House
Vyborgskiy
3 Elizavetinskaya St.
Q4 2008
No name
Central
18 Manezhny Side street
Q4 2008
House on
Kamenoostrovsky
Petrogradskiy
44D Kamenoostrovsky
Ave.
Q4 2008
All “elite” class buildings can be divided into few-apartments (club) and many-apartments buildings.
Besides the number of apartments they also differ in infrastructure.
Club format buildings (up to 50 apartments) contain a limited infrastructure: parking, guard, central
conditioning system, ventilation, water and air cleaning.
For tenement buildings the developed infrastructure is the main characteristic. In this meaning it is
alike the hotel; besides the club house infrastructure there will be the following items: gym,
swimming pool (not always), lobby, conference-hall, children infrastructure, beauty salon (solarium,
sauna and massage rooms), good expensive local shop.
The major requirement for “elite” accommodation is the location. Therefore the main area for
locating elite objects is the city centre.
The most typical zone for allocation of “elite” class accommodations
Valuation Advisory
- 46 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Central District
“Golden triangle” area (Nevskiy Ave / Dvortsovaya Quay/
Fontanka)
Chernyshevskaya metro station area (Tavricheskaya St.,
Tverskaya St., Kirochnaya St., Furshtatskaya St., Robespyer
Quay etc)
Petrogradskiy District
Houses with panoramic view over Petrovskaya Quay,
Pesochnaya Quay
Apartments in Kamenoostrovsky Ave
Few-storied building in Krestovsky and Kamenny Islands
Vasileostrovskiy District
Apartments with view over the Neva, Petropavlovskaya
Fortress and the Winter Palace
Territories bordering to Vasilevsky Island
Admiralteyskiy District
Apartments with views over Neva and architecture
monuments (Admiralteyskaya, English Quays), apartments
with views over Decembrists’ Square, Alexander Garden,
Isaac’s Cathedral, Theatre Square etc)
Elite accommodation in St. Petersburg can be situated in the named locations. Demand for
apartments in such places is considered to be high, which allows the developer to set high prices.
Currently, major part of built and planned “elite” class buildings/complexes is concentrated in
Petrogradskiy district especially on the Krestovsky Island.
Structure of existing supply of "elite" class residential objects in the
primary market (according to the number of objects)
Admiralteiskiy
Krasnogvardeiskiy
Vyborgskiy
Central
Petrogradskiy
0
•
5
10
15
20
25
30
Construction of “elite: class building is gradually moving away from the centre;
Valuation Advisory
- 47 -
35
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
Vyborgskiy, Krasnogvardeyskiy and Admiralteyskiy Districts can also be considered as “elite”
class apartments (but not houses) districts.
Infrastructure
The level of infrastructure development depends on the format of the house (number of flats): in
club houses with maximum 50 apartments, infrastructure is usually minimal. As for tenement
buildings, the developers fill them with infrastructure. This is due to the additional expenses for
maintaining the infrastructure paid by inhabitants.
Infrastructure objects can be both open and closed for the external visitors. Expensive, super-elite
complexes are more isolated, hence all infrastructure objects there are closed for external access.
The minimal set of infrastructure in elite club houses is limited to:
•
Premises for security
•
Premises for service stuff such as concierges, apartment cleaning, room-service, technical
house exploitation service stuff.
The ground and first floor locations of an elite house are assigned for these objects.
In tenement buildings the most widespread infrastructure objects, situated inside the house are:
•
Subsidiary locations for the managing company, concierge, exploitation service, guard;
•
Playroom for children;
•
Shop, minimarket (as a rule, food-stuffs and manufactured goods of the first necessity) with an
area of 200-400 sq. m. on average;
•
Beauty salon;
•
Fitness club or gym;
•
Winter garden.
More seldom to be found are objects, which are situated in the built-in locations on the ground
floors of an elite building, such as:
•
Snack bar, cafe, restaurant;
•
Pharmacy;
Valuation Advisory
- 48 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
Medical centre;
•
Mobile shop.
According to Moscow classification of “elite” class residential complex the building must contain a
cafe-bar, a bath for cleaning dogs’ paws, a cigar-room and a billiard-room.
Infrastructure objects which developers usually put apart from the building or into separatelystanding houses are the following:
•
Wellness-centres;
•
Sports complexes;
•
Swimming pools;
•
SPA and sauna complexes;
•
Beauty centres;
•
Cinema;
•
Kindergartens / pre-school educational institutions / playrooms for children.
Moreover, “elite” class complexes usually contain an inside-yard territory with playgrounds for
children and different other status-showing elements of improvement. “Elite” class object which is
situated close to water could contain a yachts mooring as well.
Main developers
The participants of the “elite” real estate market characterize it as more monopolized than in
Moscow: Each out of the big players has quite a big part, which allows the main players to control
apportionment of construction areas.
Currently the main construction companies specializing in “elite” class real estate are PC St.
Petersburg Rebirth, RBI Holding, PC Petersburg Reconstruction and GSC LenspecSMU:
However, nowadays there is a tendency of competition strengthening. For three first quarters of
2007 the most parts belong to Atlantic company (19%) and TSNIIM (14%).
Valuation Advisory
- 49 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Shares of the main developers of "elite" class accommodations
Atlantic
BaltStroy
Kolomiagi-Retro
Concorde Management and Consulting
KottedzhStroy
Saint-Peterburgskiy gumanitarniy delovoy centre "UNA"
SvyazProekt
StroyEkipazh
Settle City
Carskoselskaya Stroitelnaya Kompaniya
CNIIM
Others
On the other hand there is a tendency of supplanting smaller weaker companies, which failed to
optimize their production. As a result, strengthening of competition and higher level of
professionalism is expected in the field in the close future. Several companies currently leading 2-3
construction projects could possible leave the market.
5.2.7.2
Demand analysis
Demand for “elite” class real estate in St. Petersburg has been stable during the last several years.
However, currently the consumers’ demand for “elite” class real estate objects is growing and the
present supply does not always and in all aspects correspond to the expectations of the potential
clients.
With the development of mortgage credit systems in the “elite” class residential real estate market
the purchasing power of potential clients grows. Moreover, many banks are providing credits on
the ground of unconfirmed income of the customer.
Buyer’s characteristics
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
Income rate per family – from $20 000 per month according to experts’ estimation and it
amounts to $15 000 according to the present credit conditions;
•
Type of activity – business owners and officials. Less common – top-management of large
companies (financial, raw materials), creative intelligentsia and sportsmen;
•
Age – mainly 40 to 55 years old. Less common – from 35 to 40 and older than 55;
•
Family: size – most common 4 people (families with 2 children, less common – families with
one child).
Buyer’s preferences
Location is the most important characteristic of “elite” class accommodation: Petrogradskiy,
Central and Vasilyevsky districts; solid surroundings of the house; beautiful view, not obligatory
over water, but also over architectural monuments and parks;
Apartment planning: defining the necessary area and number of rooms the client relies on the fact
that each family member needs his own room. In the best case there should be a guest room or a
nanny room. Mainly clients are interested in apartments with over 150 sq. m. with a considerable
size of the kitchen and the living room. An average area of an “elite” class apartment amounts to
135 sq. m.
The size of a dwelling complex: most potential clients do not consider whether it is a club house or
a tenement house, every type of the house has its adherents, a more important question is a number
of neighbours on the floor, and there shouldn’t be more than three of them.
Infrastructure: the presence of infrastructure in a complex is not a question of principle either.
However, the most actual things might be: reception, which takes care of small inhabitants’ requests
(windows cleaning, cornice hanging etc.) and a children room. An important question in “elite”
housing is the decoration and space of the lobby.
Demand characteristics
According to the data of the quantitative study of “elite” class accommodation potential clients’
preferences, the main demand is for apartments with an area of 100-300 sq. m., about 43% prefer
purchasing apartments with an area of 150-200 sq. m. There is no demand for apartments with an
area less than 70 sq. m.
Valuation Advisory
- 51 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Elite class buyers' preferences according to the area of an appartment
Less than 70 sq. m.
70 - 100 sq. m.
100 - 150 sq. m.
150 - 200 sq. m.
200 - 300 sq. m.
More than 300 sq. m.
In the structure of demand on apartment type basis the most part of the preferences belongs to 3
and 4-room apartments. The share of demand for 3 and 4-room apartments amounts to 74%.
Elite class buyers' preferences accroding to the number of rooms
1 room
2 rooms
3 rooms
4 rooms
5 rooms
6 rooms
7 rooms
more than 7 rooms
Choosing an “elite” class apartment one of the big matters is how many apartments (and
accordingly neighbours) there are on the floor, with it all the principle “the less, the better” works.
22% of potential clients do not consider this factor as an important one, but for most part of the
potential clients the number of apartments on the floor should not be more than three, with it all
the best variant is considered to be 2 or 3 apartments on the floor.
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Concerning the ceiling height only 11% of potential clients of “elite” class apartment would prefer
it to be more than 3.3 m, for the rest of the customers (89%) this characteristic is not important
issue. However, “elite” class buyers do expect the height of the ceiling to be not less than 3 metres.
Acceptable number of appartments on the floor
One
Two
Does not matter
Tree
More than four
Four
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
According to the survey held among the potential buyers of “elite” class apartments about 80% of
them suppose that elite apartment must have a balcony, though it is enough to have only one. Only
3% would prefer to have two balconies, and 18% of respondents claim that for them the presence
of a balcony is not a necessary condition for purchasing an apartment.
Elite class buyers' preferences according to the existence of a
balcony
No
Yes, one
Yes two
More than two
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
About 75% of potential buyers prefer apartments with the view over water, 49% - with the view
over parks, green planting, about 25.5% prefer the views over a city panorama and architecture.
Elite class buyers' preferences acording to the landscape characteristics of an
appartment
Other
Quiet backyard
Bay
Water (rivers, canals, lakes, ponds)
Neva
Urban landscape, architecture
Greenery
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
Infrastructure
In the structure of preferences of infrastructure objects according to the survey the presence of a
gym and a beauty salon in an “elite” class complex or next to it are leading. Such objects as fitnesscentre and a swimming pool are of an average degree of importance for a potential buyer. All other
objects practically do not influence on the decision of purchasing an “elite” class apartment.
Preferences according to the infrastructure objects
GYM
Cosmetical centre
Fitness centre
Swimming pool
Caffe
Sauna
Kindergarten
Medical centre
Retail centre
0,0%
Valuation Advisory
5,0%
10,0%
15,0%
- 54 -
20,0%
25,0%
30,0%
35,0%
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
According to the potential buyer of an “elite” class apartment the concierge service, twenty-fourhour security service including the parking security service is a must. More than 30% of the
respondents prefer the building to be managed by a professional management company.
Summarizing the experts’ data, detailed interviews with the customers and the quantitative study the
following conclusions about the necessary set of infrastructure and service objects can be done:
•
The most important for customers is the security, thus the strict demand for security of the
house and surrounding territory. Security visualisation is also important for the potential buyer:
the presence of video cameras and concierge at the entrance;
•
Sport objects. It is not necessary to set a whole sport complex, since most of the customers
have their own training instructors; however, the presence of a small gym, swimming pool and
outside sport ground would be welcome;
•
Service objects:
-
Receiving point of high level laundry and dry-cleaning services;
-
High level shoemaking services;
-
Solarium, (no need for a beauty salon);
-
Technical services.
•
Children room/ kindergarten.
•
Lobby-bar, cigar-room; potential buyers are also interested to have a place for rest and guests
receiving (no need to clean-up yourself);
•
First necessity products shop.
Preferences according to the in-house servicesprovided
Concierge
Secured parking
Twenty-four-hour security
Professional Operating Company
Cleaning services
Laundry services, dry cleaning
0%
Valuation Advisory
10%
20%
- 55 -
30%
40%
50%
60%
70%
80%
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Sales’ rate
Analyzing the projects of “elite” class housing around the city in general the realization speed of
such projects is on average 3-4.9 apartments per month.
Sales schedule
“Elite” class accommodation market is totally not seasonable as the standard accommodation one.
Experts claim that there are always open requests and their number as the number of sales
decreases insignificantly only in January and May.
One of the important characteristic of “elite” class accommodation is the fact that the apartments
of this kind are sold the best at the beginning of the project, when only about 25% of the complex
is built (about two months). By then there is a bigger choice of apartments by their space, lay-out,
floor and view. Usually at this stage about 35-50% of apartments are sold. Then people buy the
apartments they are interested in, and at the end they buy all the rest.
Parking
The presence of an underground parking is an integral part of an “elite” class residential complex.
According to classification of “elite” accommodation there must be one parking place per
apartment. In reality this demand is not always kept by the developers. However, the following
factors are taken into consideration:
•
Difficult situation in the city with cars storing;
•
Specifications of an elite client who owns expensive cars demanding inside storage;
•
Sufficient place at the covered parking is currently one of the most determinative factors in
purchasing an “elite” class apartment.
The conclusion that can be made is that currently and in the close future the most important and
competitive factor in “elite” class housing is sufficient amount of parking slots.
“Elite” class house parking slots are usually located in the underground parking with a possibility of
reaching the lobby. Usually, in addition to those there is an outside guest parking.
According to the information provided by experts there is a certain correlation between the number
of provided parking places and the amount of rooms in the apartment for “elite” class
accommodation:
Valuation Advisory
- 56 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Apartment type
1 room apartment
Amount of
parking
places
0.5-1
2 room apartment
1-2
3 room apartment
1.5-3
4-6 room apartment
2-4
The minimum size of a parking place is fixed by SNIP and amounts to 11.5, sq. m. (2.3*5 m). The
maximum size is not regulated and is determined by the developer and/or by different objective
reasons (column pitch). The optimal size of a parking place amounts to 18 sq. m. (3*6 m).
The price of a parking amounts to $50 000–$100 000, which makes in average $67 250 per parking
slot.
5.2.7.3
Price characteristics
Conventional minimal price per sq. m. of “elite” class accommodation is $4 000. According to
experts’ estimation this price can go up to $30 000 per sq. m. Currently, the average price per sq. m.
of “elite” class accommodation amounts to $7 150 per sq. m.
Since beginning of 2007 the growth rate in “elite” segment has amounted to 25-30%. The biggest
leap forward took place in the 3rd quarter of 2007 (the total growth amounted to 14%). One of the
reasons of such a significant growth is that the major part of the present supply of “elite” class
housing is concentrated on Krestovsky Island; this year most part of these houses/complexes is at
the last stage before putting into operation. Therefore there is a typical for the last stage price
growth.
Average prices for “elite” class accommodation according to the regions
District
Central
Average Price
($/sq. m.)
9 690
Petrogradskiy
7 550
Moskovskiy
5 770
Vyborgskiy
4 760
Factors, influencing price growth and price growth forecast
Taking into consideration the decrease of supply, lack of suitable spaces for building “elite” class
accommodations, stable demand on this kind of accommodation in the following 5 years the
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
growth rate on “elite” class apartments in central and surrounding districts will be stable and will
amount in average 15-20% per year. In further districts the growth rate will be less, and it will be
close to the one of “business” class accommodation.
5.2.7.4
Tendencies and forecasts
•
Decrease in supply of new “elite” accommodation related to the lack of suitable location for
building “elite” class complexes;
•
Decentralisation of “elite” class accommodation market – building “elite” class
accommodation on further territories not belonging to the central districts;
•
Start of new bigger projects involving a large number of apartments including reconstruction
projects of whole quarters (“Parade Quarter”, the house in 4 Robespier Quay and some
others), forming homogeneous social environment;
•
Continuing tendency of leaving the market by weak companies, increasing professionalism of
developers, their experience in working with “elite” class projects, and financial stability;
•
One of the most expected tendencies at the market – changing of the sales politics in order to
start selling the apartments at the final stages which will allow to sell them for a higher price
than at the starting stage as it is done now;
•
Growth rate for “elite” class residential real estate in central districts will be stable, and on
average it will amount 15-20% per year.
5.2.8
Elite Class
The major tendency in the St. Petersburg real estate market becomes the realization of bigger
projects, including complex development of the territories. This concerns all the accommodation
categories. There is a big number of construction projects planning to build “millionik” quarters in
the city.
“Sea Facade” – one of the biggest development projects in the coastal area. On new formed
territories with the total area of 440 ha there is planned to build a sea passenger port, business
centre, modern residential quarters and leisure centres. The construction will be in three stages: 1st
stage (centre) 2008 – 150 ha, 2nd stage (south) 2010 – 140 ha, 3rd stage (north) 2011-2012 – 150
ha.
“Yugorsky Region” – a new district which will be built in Krasnoselskiy region of St. Petersburg
and its total area will amount 207 ha.
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
On the territory of the former meat processing factory “Samson” a new multifunctional residential
complex “Samson-Ligovka” will be constructed (100 400 sq. m. on the territory of 2.8 ha,
investments – $120 000 000).
The new residential quarter “Nevskaya Galaxy” will consist of 39 complexes with the total area of
320 000 sq. m., which is approximately 5 000 apartments. The quarter is bordering in the west with
Kolontay St., in the north – with Belyshev St., in the East – with the continuation of Podvoysky St.
and in the south opens a visual perspective over Dalnevostochny Ave., which crosses the whole
Nevskiy District along water boundaries of Neva.
On the bank of the Neva close to Proletarskaya metro station Obuhovsky Ave. 119 “Petropol” will
construct a multifunctional complex on the territory of the former Empire Card Factory. The
different-floored complex with total area of more than 160 000 sq. m. will contain residential
housing, business-centre, parking and leisure-entertainment centre. Construction works will start in
2008and are planned to be finished in 2011.
MC “Teorema” has started working over a bigger project of residential building “Red Dawns”
which will be situated under Strelna. Total construction area is 322 ha; it is located between
Petergof and Strelna. In “Red Dawns” settlement it is planned to construct low-storied residential
accommodation of “economic” and “comfort” class which designed for 76 000 people. Social
infrastructure of the district will include schools and kindergartens, pharmacies and health centres,
post offices, shops, banks, cafes and restaurants. The beginning of construction works is in 2009,
the end is in 2014.
The “Slavyanka” project realized by “Baltros” holding, is planning complex engineering
development of 220 ha with the possibility to construct 1 300 sq. m. of low-storied residential
accommodation. The new residential district is oriented on low-storied building (4-5 floors) turning
to yard lay-out principle, while several houses form a smaller quarter with a closed territory.
The total area of “Baltic Pearle” is 205 ha, while the construction area is 1.76 million sq. m. The
biggest part of the territory – about 1 million sq. m. will be withdrawn for residential objects of
different classes. About 500 000 sq. m. will be occupied by commercial real estate, such as trade and
entertainment centres, exhibition halls and galleries, business-centres, hotels, sports and touristic
objects. A big number of social infrastructure objects such as educational, medical and sport
centres, and leisure centres are planned for construction as well.
Valuation Advisory
- 59 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
A multifunctional complex “Clover house” will be situated in the city centre, total area of the
complex is 320 000 sq. m. Four-star hotel containing 150 rooms, apart-hotel containing 120 rooms,
A-class office centre, trade-entertainment centre, parking, conference hall and residential complex
of 90 000 sq. m. in total are planned to be constructed on this territory. The end of the construction
works is 2010.
“New Izhora” is situated in Pushkinskiy District of St. Petersburg at the border with Kolpino. On
the territory of 285 ha 6 000 two-storied one-family houses and duplexes will be constructed, which
will provide accommodation for about 20 000 people. The new district is situated about 9 km away
from the KAD (Circle Highway). The construction works started in May 2007 and are planned to
be finished in 2009.
In Primorskiy region on the total area of 7.8 ha Fermskoye Highway 22B, “Petropol” and
Scandinavian Building Concern plan to build a multifunctional complex which will contain
“comfort” class accommodation of 108 000 sq. m. total area, “business” class accommodation of
52 000 sq. m. total area. Preschool educational establishments, school, shop, pharmacy and other
social infrastructure objects are planned to be built.
“Glavstroy” company will build a new residential district “Northern Valley” in Vyborgskiy district;
the total area of the project is 390 ha. The end of the construction works is in 2014.
A new project “Europe Quay” will begin in 2008 in St. Petersburg. The construction will take place
on the territory of 10 ha on the northern bank of Malya Neva. The total construction area is
475 000 sq. m., 140 000 sq. m. of which will be residential accommodation.
About 2 million sq. m. of residential accommodation is planned to be constructed in “Kudrovo”.
The construction works started beginning of 2007, planned to be finished in 2015. However, at the
end of 2008 the first stage will be put into operation. Besides the residential accommodation about
200 000 sq. m. of commercial real estate is planned to be build (office buildings, retail centres, car
repair garages, exhibition halls). There are some green areas planned on the territory, these are
untouched forest areas.
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.3
Residential market overview of Moskovskiy district in St. Petersburg
General characteristics of the new-building projects
Moskovskiy district is considered to be one of the most prestigious districts, close to the city. The
territory of the district is one of the leading territories, concerning the input of new buildings due to
formation of new residential areas near “Zvezdnaya” metro-station.
Moskovskiy district contains plenty of residential projects of “business” and “comfort” class.
Experts believe that about 12-13% of all the primary residential market of those classes mentioned
is located in the Moskovskiy district. Single taken residential houses here can be positioned as
“elite” but in most cases they turn out to belong to the lower border of the “elite” segment (or to a
high boarder of a “business” one). That’s why risks, related to elite residential projects in the
Moskovskiy district, are considered to be high.
Nowadays there is only one elite object (on sale) under construction in the Moskovskiy district that
can belong to the lower border of the elite class – residential complex «The House of Tradition
Society».
90% of residential objects under construction, belonging to «business» and «comfort» classes, are
situated in the central part of the Moskovskiy district, in the zone, limited by the following streets:
Blagodatnaya St, Belgradskaya St, Vitebsky Prospect, Dunaysky Prospect, and Kubinskaya St.
A larger part of the residential projects of the middle class (“business” and “comfort”) belong to
the “comfort” segment (55%).
Structure of the number of houses
(complexes), located in the Moscow district,
put into sale
business
45%
Valuation Advisory
comfort
55%
- 61 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Two residential houses of a “comfort” class (presumably), situated in the 5th Predportovy Passage
and Vitebsky Prospect, 83-87, are undergoing a project stage.
General characteristics of the new-building projects
The range of prices in the residential sector in the Moskovskiy district is as follows: “comfort” class
- from $2 300 to $2 920 per sq. m., “business” class - from $2 985 to $4 800 per sq. m.
The highest prices can be found in the residential business-class complex “Imperial” – the lower
border of the elite segment.
Class
Min
Max
Comfort
US$2 300
US$2 920
Business
US$2 985
US$4 800
Elite
US$5 500
US$6 000
Compared with the average price of an elite apartment in the city ($7 760 per sq. m.), an average
price of an elite flat in the Moskovskiy district makes up $5 770 per sq. m.
Map of objects constructed and projected in Moskovskiy district
Objects of residential complexes in “business” and “comfort” classes in the zone of influence (Moskovskiy district)
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Higher comfort class complexes (active / under construction) on sale
Business class complexes (active / under construction) on sale
Comfort class – projected objects
Elite houses (under construction)
Valuation Advisory
- 63 -
Imperial
Graf Orlov
Amber coast
Non
1
2
3
4
Valuation Advisory
Title
№ on the map
Under
construction
Under
construction
Under
construction
Under
construction
Status
- 64 -
Varshavskaya St,
23
Varshavskaya St
(from
Kuznetsovskaya
to Basseynaya)
Moskovskiy
Prospect, 181
Corner of
Kievskaya St and
Moskovskiy
Prospect
Address
Q1 2008
Q4 2007
Q3 2008, Q2
2009, Q1 2010
Q3 2009
Year of operation
List of “business” class objects, active and under construction in the Moskovskiy district (sales are open)
House
Residential
complex
Residential
complex
Residential
complex
Type
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
LEK
LEK
LEK
LEK
Project initiator
Photo
Non
Continental
Non
Non
6
7
8
9
Valuation Advisory
Gloria Park
5
Under
construction
existing
Under
construction
Under
construction
Existing
- 65 -
Lensoveta St, 43
Lensoveta St, 3
Krasnoputilovsk
aya St
Moskovskiy
Prospect, 82
Yuriy Gagarin
Prospect
(intersection of
Lensovet St and
Moskovskoe
highway)
2007
2007
Q3. 2008
Q4. 2007
2007
House
House
House
House
Residential
complex
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
StroyComplex
Times
Setl City
Torgovy Dvor
LEK
10
Valuation Advisory
Antey
Under
construction
- 66 -
Cosmonaut
Prospect, 63
Q2 2009
Residential
complex
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
City Housebuilding
Company
Zvezdny
Non
Non
Caravel
1
2
3
4
Valuation Advisory
Title
№ on the map
Under
construction
Under
construction
Under
construction
Under
construction
Status
- 67 -
Lensoveta St, 3240
Intersection of
Ordzhonikidze
St and Leninskiy
Prospect
Intersection of
Varshavskaya St
and Leninskiy
Prospect
Cosmonaut
Prospect, 61/1
Address
Q4 2007
Q1 2008
Q4 2007
Q4 2007
Year of operation
List of “comfort” class objects, active and under construction in the Moskovskiy district (sales are open)
Residential
complex
House
House
Residential
complex
Type
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Sphere
Severny gorod
Stroygrad
Stroymontazh
Project initiator
Photo
Yuzhnaya
Korona
Yuzhny fort
Pulkovsky
Pasad
Non
6
7
8
9
Valuation Advisory
Zolotaya
Dolina
5
Existing
Under
construction
Under
construction
Under
construction
Under
construction
- 68 -
Varshavskaya St,
57
Intersection of
Pulkovskoe
highway and
Dunaysky
Prospect
Intersection of
Tipanov St and
Cosmonaut
Prospect
Intersection of
Dunaysky
Prospect and
Svirskaya St
Intersection of
Pulkovskaya St
and Cosmonaut
Prospect
2007
Q3 2008, Q4
2008
Q4 2007, Q3
2008
Q1 2010
Q4 2007
House
Residential
complex
Residential
complex
Residential
complex
Residential
complex
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
36 Trest
City Housebuilding
Company
Elis
Setl City
LEK
Non
Non
11
12
Under
construction
Under
construction
Under
construction
Yuriy Gagarin
Prospect, 18
Tipanov St, 3840
Intersection of
Galastyan St and
Predportovy
Passage
Q4 2008
Q1 2009
Q3 2009, Q1
2010
Non
2
Valuation Advisory
Non
Title
1
№ on the map
Under
construction
Projected
Status
- 69 -
Vitebsky
Prospect, 83-87
5th Predportovy
Passage, 3
Address
Non
Non
Year of operation
List of “comfort” class objects, active and under construction in the Moskovskiy district (sales are not open)
Victory
Square House
10
House
House
Type
House
Residential
complex
House
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
36 Trest
36 Trest
Project initiator
36 Trest
Building trest №
20
Severny gorod
Non
Non
Photo
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
“Elite” class apartment building under construction characteristics in Moskovskiy district
Location: Moskovskiy district, Lensoveta St, 3
Type of the object: apartment building
Project participants: developer – LLC «Managing
Company «Tradition», builder – LLC «Orient-Express»
Number of flats: 49 elite apartments 75 - 200 sq. m.
Parking: additional premises for cars will join the
building from the side of the yard + underground
parking with ground-level parking places on the roof
Guard: guard-post with a house-access system
Utilities: compulsory ventilation, central conditioning, multi-stage water-cleaning filters, ray heat
supply system (with a pipe-separation system in the floor), high-class radiators with thermoregulators, higher electricity facilities for each flat.
Characteristics of demand on residential projects in Moskovskiy district
From the point of view of living conditions, Moskovskiy district is considered to be prestigious
among the buyers.
Demand on apartments in Moskovskiy district in the middle price segment (“comfort” and
“business”) is estimated at the level of 9-11%, which is a bit less than an existing supply. But within
Moskovskiy district the distribution of the demand is not equal.
On the territory of the district a zone along Moskovskiy Prospect from “Elektrosila” metro-station
to the Victory Square the demand is high, as it is closer to green zones of the district. According to
the prices and positioning, some objects in this zone are approaching an elite segment. But at the
same time, the supply is concentrated in the zone, limited by Moskovskaya, Zvezdnaya and
Kupchino metro stations, and the supply in the attractive “Victory Park” metro station zone is low.
Demand on elite apartments in Moskovskiy district is limited. Moreover, it’s necessary to bear in
mind, that the demand on elite apartments is locally concentrated in the most prestigious parts of
the district – along Moskovskiy Prospect from “Electrosila” to “Victory Square” metro stations.
Valuation Advisory
- 70 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
5.4
Retail Market Overview
Key Indicators
Key Indicators
Total supply in shopping centres, million sq. m.
2,55
Commissioned in 2006, million sq. m.
1.04
Vacancy rate, %
5
Base rents, $ per sq. m. per year
Anchor tenants
100-450
Shopping gallery operators
500-2 500
Supply
During 2006, an unprecedented amount of new retail space was put into operation: the total space
grew by 1.04 million sq. m., more than a threefold increase in the annual figure for the previous
three years. During the year, 39 new retail outlets appeared on the city’s map, with a significant
number opening in December – 15 centres (as compared to the four retail centres opened in
December 2005). As of the end of 2006, all in all there were 112 retail centres with a total area of
2.7 million sq. m. operating in St. Petersburg.
The DIY and hypermarket segments saw the most intense development in 2006, with their total
space considerably increased during the year (that of DIY stores more than twofold and of
hypermarkets more than threefold) and, as of year-end, amounted to 230,000 sq. m. and 315,000 sq.
m. respectively.
The shopping centres segment is an absolute leader in total retail space.
During 2006, the total space of this segment increased almost twofold and reached 1.84 million sq.
m., as diagram below show.
Breakdown of operational retail facilities by Total Area as of 4Q 2006
Valuation Advisory
- 71 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
6%
9%
Specialized furniture
shopping centers
5%
Centers
12%
Hypermarkets
Cash&Carry
68%
Specialized shopping
centers (DIY)
There was a peak of new construction in Saint Petersburg in 2006. The largest shopping centres
delivered last year are MEGA Dybenko (retail GLA 158,000 sq m) and MEGA Parnas (retail GLA
103,000 sq m). The total stock of quality retail premises was more than 567,000 sq m as of 2006.
The largest retail centre completed in Q1 2007 is Pulkovo-3. Raduga shopping centre was opened
in April 2007. It is currently one of the main projects in St. Petersburg. Retail GLA of the shopping
centre is 75,000 sq m.
In 2007 the total stock of quality retail premises increased by 24% and is currently more than
704,000 sq m.
While the total retail stock is rapidly increasing St. Petersburg is still far behind the main European
cities as well as Moscow, and has an index of 154 sq. m. of quality retail space per 1000 citizens
comparing to 180 sq. m. in Moscow and more than 500 sq. m. in Milan and Warsaw.
Quality retail supply, sq m per 1000 citizens
Valuation Advisory
- 72 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
630
575
430
410
286
224
180
154
115
114
98
87
35
Su
rg
ut
K
yi
v
K
ra
sn
od
K
ar
ra
sn
oy
ar
sk
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lg
og
R
os
ra
d
to
von
-D
on
nb
ur
g
os
co
w
Pe
te
rs
bu
rg
M
St
.
Ek
at
er
i
K
az
an
ag
ue
Pr
M
i la
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Fr
an
kf
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W
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w
53
Construction activity will remain on the high level in 2007-2008. Large amount of shopping centres
and multifunctional complexes is planned to be delivered in 2008-2009 (as diagram 5 show). If all
the announced projects are delivered in time the total quality retail stock will grow by 2.5 times.
Dynamics of quality retail stock growth (by the end of the year), sq m
2 000 000
1 800 000
1 600 000
1 400 000
1 200 000
1 000 000
800 000
600 000
400 000
200 000
0
2006
Valuation Advisory
F2007
- 73 -
F2008
F2009
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
The diagram above shows the dynamics of quality retail centres’ growth. There is a significant
growth planned for the next couple of years with an increase to 1 800 000 sq. m. by the end of
2009.
The map below shows the main retail projects located in St. Petersburg.
St. Petersburg map with the main retail projects
Valuation Advisory
- 74 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
The tables below represents planned and under construction retail centres shown on the map
above. And the following table – existing retail centres.
Retail centres in St. Petersburg planned or under construction
#
Property name
Property address
16
Adamant Park
Pulkovskoe highway / Dunaisky
prosp.
2009
Planned
17
Aeropark
Pulkovskoe highway, between
Pulkovo 1 / Pulkovo 2
2007
Planned
18
Atlantic City
Savushkina Street, 141
2007
U/C
19
Balkaniya Nova
(phase 2)
Balkanskaya Sq., 5
2008
Planned
64000
20
City Mall (phase 2)
Ispytateley prosp. / Kolomyazsky pr
2007
U/C
26341
21
City Mall (phase 3)
Ispytateley prosp. / Kolomyazsky pr
2008
U/C
44750
22
City Park
Bogatirsky pr., 18
(blank)
U/C
16000
64500
23
Dolgoozernaya
Komendantsky pr/ Dolgoozernaya
2008
Planned
15500
32300
24
Evropa Centre
Prospect Stachek, 45/2 / Kirovskiy
zavod
2008
Planned
70000
98000
25
Felicita
Dalnevostochny pr./Kollontay st. kvartal 9B
2008
U/C
63630
83000
26
Graf Orlov
Moskovskiy prosp., 5 min from
Moskovskaya metro station
2010
U/C
65000
150000
27
Greenwich
Prosvesheniya Prosp, Prospect
Prosvescheniya metro
2008
Planned
50000
74500
28
Kantemirovsky
intersection of Polyustrovskogo pr.
and Kantemirovskaya Street
2008
U/C
41000
74000
29
Kievskaya
st./Chernigovskaya
st.
Kievskaya st./Chernigovskaya st.
2010
Planned
30
Komendantsky
Komendantsky Square, 1
2008
U/C
31
Kontinent
(Baykonursky)
Baikonurskaya Street
2007
U/C
40000
32
Kruiz
Kommendantsky pr.
Planned
22000
33
Kushelevka
Prospect Marshala Bluhera, 4/3
2008
Planned
47500
66500
34
Leto
Pulkovskoe highway, site 7
2008
U/C
81544
107700
35
Ligovskiy
Ligovskiy prospect, 26-38
2008
U/C
90000
220000
36
Lomonosovskaya
(phase 1)
Babushkina Street and
Lomonosovskaya metro station
2009
Planned
49353
69200
37
Miller Centre
(phase 3)
Komendatskaya Square, 11
2007
U/C
Valuation Advisory
Delivery
year
- 75 -
Status
Retail
GLA
20000
Total
129800
91000
30000
108500
140000
25000
47222
20000
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
#
Property name
Property address
38
Naberezhnya
Evropi
Prosp Dobrolubova/ Birzhevoy
most/ nab. Maloy Nevi
2008
Planned
100000
39
near Moskovskiy
train station,
Ligovskiy pr. 26-38
near Moskovskiy train station,
Ligovskiy pr. 26-38
2008
Planned
150000
40
Nevskiy Coliseum
Bugri, next to IKEA
2008
Planned
150000
250000
41
Nevskiy Plaza
Nevskiy Prospect 55, 57, 59
2008
U/C
2770
54280
42
Novoe Devyatkino
Toksovskoe Sh., kv. 1А, Novoe
Devyatkino
2007
U/C
9800
14390
43
Osinovaya Rosha
Vyborgskiy highway, Pargolovo
settlement
2008
Planned
120000
44
Planeta Neptun
(phase 2)
Marata St, 86
2008
Planned
56000
45
PR-12
Engelsa Prosp., 126
2007
U/C
15400
27800
46
Shkipersky Mall
(phase 2)
Maly pr., 88
2007
U/C
10000
19300
47
Shushary
Moskovskiy prosp., Shushary
settlement
2009
Planned
160000
48
Slovatsky dom
(blank)
2007
Planned
74000
49
Stockmann
Vosstania str., 2
(blank)
U/C
50
Uzhny
kvartal 7,Gagarina
prospect/Ordzhonikidze st.
2006
U/C
53020
51
Zvezdniy (phase 2)
Lensoveta Street, 97
2008
Planned
112000
Valuation Advisory
Delivery
year
- 76 -
Status
Retail
GLA
Total
33000
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Main existing quality retail projects in St. Petersburg
Project name
Address
Retail
GLA
Delivery
year
№ on the
map
City Mall
Ispytateley Prosp. /
Kolomyazhsky Prosp.
17,000
2007
1
French Boulevard
Novatorov Blvd., 11 bld.2
11,300
2005
2
Grand Canyon
Engelsa Prosp., 154
53,000
2006
3
Gulliver
Torfyanaya Doroga Str., 7
40,000
2005
4
June
Industrialny Prosp. / Kosygina
Str.
30,500
2006
5
Continent
Stachek Prosp., 99
46,000
2006
6
MEGA Dybenko
12th km of Murmanskoe
highway
158,000
2006
7
MEGA Parnas
KAD / Engelsa Prosp.
103,000
2006
8
Planeta Neptune
Marata Str., 86
20,000
2005
9
Rodeo Drive
Kultury Prosp., 1
32,370
2006
10
Sennaya
Efimova Str., 3
23,000
2003
11
Varshavsky Express
Obvodnogo Kanala Nab., 118
25,000
2006
12
Raduga
Kosmonavtov Prosp., 14
75,000
2007
13
Ramstore
Kolomyazhsky Prosp., 19, bld.
2
25,100
2005
14
Pulkovo-3
Sherenmetyevskaya Str., 15
45,000
2007
15
Valuation Advisory
- 77 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Overview of the biggest existing quality shopping centres
Further we would like to overview some of the biggest quality shopping centres in details:
June shopping centre
Industrialny Prosp., 24
Location
SC is located in Krasnogvardeyskiy district, at the
intersection of Kosygin prosp. and Industrialny
prosp.
Delivery year
2006
Total area
46 500 sq m
Retail GLA
30 500 sq m
Number of levels
4
Anchors
Mosmart, Detsky Mir
Tenants
SAVAGE, Arbat Prestige, Adidas, ECCO, Zarina,
Gloria Jeans
Car park
1130 parking slots
Entertainment
Foodcourt, Formula Kino, Extrasport fitness
centre, StarGalaxy, Bowing City
Web-site
www.june.ru/projects/1/4
Developer
Regiony Development ОАО
Valuation Advisory
- 78 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Continent shopping centre
Stachek prospect 99
Location
Avtovo – the nearest metro station
Delivery year
2006
Total area
56 700 sq m
Retail GLA
46 700 sq m
Number of levels
5
Anchors
Perekrestok, Eldorado, Domovoy
Tenants
Detsky Mir, OGGI, SEPHORA, ECCO
Valuation Advisory
- 79 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Continent shopping centre
Car park
Surface car park - 800 slots
Covered car park - 350 slots
Entertainment
Foodcourt, AMF bowling centre, GameZona,
Karo Film, Superslots
Web-site
www.continent.tkspb.ru
Developer
Adamant Holding
Valuation Advisory
- 80 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Mega Dybenko shopping centre
Murmaskoe highway, 12th km
Location
Murmanskoe highway
Delivery year
2006
Total area
177 000 sq m
Retail GLA
158 370 sq m
Number of levels
2
Anchors
IKEA, Auchan, OBI, Media Markt
Tenants
Detsky Mir, BananaMama, SAVAGE, TVOE,
MEXX, Mango
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Mega Dybenko shopping centre
Car park
Surface and underground
Entertainment
Café, food court, skating rink, carting
Web-site
www.megamall.ru
Developer
IKEA MOS ООО
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Sennaya shopping centre
Efimova str, 4
Location
In the centre of the city, near Sennaya and
Sadovaya metro stations
Delivery year
2003
Total area
59 000 sq m
Retail GLA
30 000 sq m
Number of levels
3
Anchors
Paterson, Eldorado, Detsky Mir
Tenants
Mexx, Mango, Benetton, Modny Bazar
Car park
Underground
Entertainment
Foodcourt, Bowling City
Web-site
www.sennaya.ru
Developer
Piter
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Raduga shopping centre
Kosmonavtov Prosp., 14
Location
Park Pobedy is the nearest metro station
Delivery year
2007
Total area
85 000 sq m
Retail GLA
75 000 sq m
Number of levels
1
Anchors
Real, OBI, Stockmann, MediaMarkt
Tenants
Santa House, Sportmaster, Adidas, La Coste,
NEXT, L’Etoile
Car park
Surface parking
Entertainment
Café, food court, Kinostar De Lux multiplex
Web-site
www.piter-raduga.com
Developer
VINCI Construction Grands Projects
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Demand
In 2006, the market witnessed a trend toward larger areas for retail operators in shopping centres.
Retail units of 100-150 sq. m. are in highest demand at retail centres. Retail areas of 1000 – 6000 sq.
m. are in high demand among anchor operators, depending on profile.
Not only has the occupancy rate reached the upper limit in prime shopping and retail & leisure
centres, but there is a waiting list for retail operators ready to occupy space if it becomes available.
Rental rates
Rents in professionally conceptualized shopping centres grew on the average by 9–13%, depending
on the tenants’ product group.
The largest increase was registered with food court operators. A decrease of rental rates was noticed
for less successful shopping centres.
The occupancy of popular shopping centres was close to 100%, most of them having a waiting list
of potential tenants.
The practice of setting a low fixed rent coupled with a share of the retailers’ turnover (3-15%
depending on the tenant’s profile) is becoming widespread.
Distribution of rental rates by segments
Profile
Area range, sq. m.
Rental Rate, $/sq. m. per year
Anchor tenants
Hypermarkets
5,000 – 20,000
100-160
Supermarkets
1,000 – 1,400
120-300
Electronics
2,000 – 8,000
180-400
Sports and Recreation
500 – 2,500
300-350
Clothing
500 - 1,500
300-500
Entertainment
500 – 8,000
100–240
Household goods
500 – 6,000
180-450
Children’s goods
500 – 2,500
250-400
Other operators
Clothing
50 – 500
460 – 1,550
Footwear
50 – 500
460 – 1,550
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Sports and recreation
50 – 500
500 – 1,300
Health and wellness
30 – 500
400 – 1,400
Children’s goods
30 – 500
300 – 800
Mobile and digital equipment
20 – 100
800 – 2,000
Accessories
10 – 100
1,200 – 2,000
Gifts
20 – 100
1,200 – 2,000
Public catering (food-courts)
30 – 100
960 – 1,800
Services
10 - 100
450 – 1,600
New construction
By our estimates, in 2007 the total retail area in the market will exceed 3,400,000 sq. m. The
shopping centre segment will amount to approximately 2,400,000 sq. m.
Major shopping centres scheduled to open in 2007
Name
Address
Total
area,
sq. m.
Anchor tenants
Date of
opening
Atlantic City
Savushkina
ul/Begovaya
ul/Primorsky
Pr/Turistskaya ul.
58,900
(net of
office
space)
Azbuka Vkusa, clothes’
department store, sports store,
children’s entertainment centre,
bowling
4Q 2007
Baykonursky
13 Baikonurskaya ul.
43,800
Supermarket, M-Video, Domovoy,
Caro-Film multiplex, amusement
park
3Q 2007
Nick
35 Marshala Zhukova
pr.
15,000
MediaMarkt, SantaHouse
2Q 2007
O’Key
139 Moskovskiy pr.
16,400
Sports store
3Q 2007
Promenade
Kommendantskaya Pl.
22,000
TechnoSchock, clothes
department store, entertainment
2Q 2007
Raduga
8 Gagarina Pr.
85,000
MediaMarkt, Real, Zara, OBI,
Bestseller, Seppala, SantaHouse,
Kinostar, bowling
1Q 2007
Severny Mall
Kultury Pr.\Ring Road
35,000
Real
2007
Ulianka
99 Veteranov Pr.
18,400
Billa, Telemax, multiplex
1Q 2007
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Market trends
•
The large number of new projects and accompanying increase in supply in St. Petersburg retail
market in 2006 are a result of the growing activity of Russian and foreign investors and
developers. International developers will continue to show high activity in the shopping centre
segment.
•
We anticipate the arrival of international and Moscow-based operators that were not previously
represented in St. Petersburg.
•
New international operators, such as Billа, Real, Leroy Merlin and Prisma, are expected to enter
the market in 2007.
•
We foresee active development of DIY stores and hypermarkets, which in 2006 happened
mostly on account of local developers. The size of hypermarkets increased more than
threefold increase as a result of the opening of five O’Key hypermarkets, having a total area of
113 000 sq. m., by Dorinda, and nine Carousel hypermarkets, having a total area of 110 000 sq.
m., by X5 Retail Group N.V.
•
Shopping centres will tend to become larger. The average retail floor of shopping centres has
grown from 14 000 sq. m. in 2005 to 22 000 sq. m. in 2006. This trend should continue.
•
New leisure formats at retail-entertainment complexes are emerging. The first seaquarium in
the city opened at the Planet Neptune retail & leisure complex, with area of 5 000 sq. m.
Rodeo Drive retail & leisure complex offers to its visitors aqua park facilities.
•
The significance of the leisure component in shopping and entertainment centres is on the rise.
•
St. Petersburg developers are expected to actively expand into regions. The market rollout in St.
Petersburg will also continue, with companies launching new retail formats. For example,
Dorinda is developing O'Key-Express supermarkets with an area of 1 500 sq. m.; Lenta has
plans to develop a chain of Norma “one-stop” shops, having a total area of 200–400 sq. m.
Forecast
A total of 700 000 sq. m. of retail space is scheduled for commissioning in 2007. Key projects
coming in the market in 2007 include the Peter Raduga retail & leisure centre with a total area of 85
000 sq. m. and Pulkovo III retail & leisure centre with a total area of 58,000 sq. m.
Valuation Advisory
- 87 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
6
VALUATION METHODOLOGY AND COMMENTARY
There are three generally adopted approaches used to value property: The Sales Comparison
Approach; The Income Approach; and The Cost Approach. We have valued the Property using the
Income Approach, taking into account sales comparables. The cost approach has not been used as
this produces a “Non-Market Value” suitable for financial statements relating only to “specialised
properties”. A description of mentioned above approaches and how these relate to the Russian
Market, follows.
In preparing our valuation we have relied upon our knowledge of the investment market and the
available evidence which is summarised in our market commentary:
The Cost Approach
Under IVS this approach is relevant to specialised properties (i.e. properties that are rarely if ever
sold on the open market … due to their uniqueness which arises from their specialised nature and
design of the buildings, their configuration, size, location or otherwise) and Limited Market
Property (i.e. properties that because of market conditions, unique features, or other factors attract
relatively few buyers).
The Sales Comparison Approach
This method involves analysing all available information on sales of comparable properties that
have taken place and making adjustments in the prices achieved to reflect the differences in the
properties sold and the Property to be valued. This approach hinges on the availability of reliable
market evidence of comparable sales. Distinction must be drawn between information that is
known to be accurate and reported information that is second hand or at best hearsay. Only
information that is known to be accurate can be relied upon with any degree of comfort to provide
an accurate valuation.
There are severe difficulties of applying this valuation approach in emerging real estate markets,
including Russia, as due to their comparative immaturity the availability of reliable market
information is very limited. To reflect this, the International Valuation Standards Committee
(“IVSC”) (the leading international body for setting valuation standards) devoted a recent White
Paper to the study. It identifies specific problems for valuers in emerging markets, which apply very
well to Russia – and these problems also tend to inhibit the operation of the market as a whole, in
particular as regards investment.
Valuation Advisory
- 88 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
The principal problem is a lack of transparency and a relatively low volume of recorded deals. In
mature property markets there is a wealth of information available on completed sales transactions,
in the form of yields and total sales prices, and this makes it relatively straight-forward to apply this
valuation technique to any property. In Russia this sort of information is often not available, and
where the details of transactions are publicized their accuracy can not always be guaranteed. In
addition, a large number of sales transactions in Russia take place “off-market” and therefore their
details are seldom known beyond those who were party to the deal.
The volume of completed deals is very low in all sectors of the Russian real estate market. In
addition – as outlined above, deal information is rarely reported accurately and is often manipulated
for other reasons benefiting the separate parties to any sale deal. Therefore, as part of the Report
we have not applied the Sales Comparison Approach.
Projected Returns
Based on the price per square meter for residential area of
US$2 700. Assuming house size of 84 square meters on average
and 2 100 00 constructed residential area in accordance with the
information provided to us. This sales price has been projected to
grow constantly by rate of 5% over the period of the
development.
The retail rent rate of US$310 and US$360 was taken into
consideration. Total constructed retail area will be 132 000 sq. m.
Discount Rate
A discount rate of 26% has been used for this project to valuate
the situation as of the date of valuation, taking into consideration
that not all of the construction permits are in place.
Discount rate of 23% is used in order to calculate the
Hypothetical Value Indication assuming that all the legal
permissions for construction are in place.
The Income Approach
The most commonly used technique for assessing market value within the Income Approach is
Discounted Cashflow. This is a financial modelling technique based on explicit assumptions
regarding the prospective cashflow to a property or business and the costs associated with being
able to generate the income. To this assessed cashflow is applied a market-derived discount rate to
establish a present value of the income stream. This Net Present Value (“NPV”) is an indication of
Valuation Advisory
- 89 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Market Value. This approach is considered to be the most sophisticated valuation technique, over
and above even the Sales Comparison Approach, because it allows differences between comparable
sales and the subject Property to be explicitly considered and analysed. It is therefore less based on
subjective judgments but objectively on market available information.
For the basis of the current valuations where for the majority of properties consents exist for a
specific type of development, the income approach is the most relevant. The residual value for
properties under development or properties held for future development is the NPV of all future
income streams less the NPV of all future costs. The costs include all of the development costs still
outstanding in respect of each property, taxes paid over the operation incomes and tax for the sale
of assets, and future incomes are assessed based on current returns for completed properties of a
similar nature in the market adjusted to reflect the expected completion date for the particular
project and anticipated future trends in rents and / or sales prices.
The difficulty in applying this method in the Russian market is assessing the correct market derived
discount rate, due to the very small number of transactions, the lack of transparency in the
reporting of information and in the wide variations in returns required on projects from different
investors.
GLOBAL ASSUMPTIONS FOR INCOME APPROACH
For the properties “held for development”, some general assumptions have been made in
developing the residual valuations, in addition to the assumptions and conditions above.
These are summarised below:
Financial Analysis Commentary by Use for Retail
Acquisition Cost:
The properties are currently owned. Therefore the acquisition cost
is not assumed in the modelling process. The Property is assumed
to be held freehold;
Development Proposals
It has been assumed where project documentation exists that any
development would conform to the overall sizes as provided to us
unless it is reasonable to assume that development could take
place in some other form. Where summary information has not
been provided we have made reasonable assumptions as regards
the overall density of development;
Valuation Advisory
- 90 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Utilities &
Road Improvement
In Russia the cost of providing utilities and executing necessary
road improvements can vary widely. Where utilities need to be
provided or road works executed it has been assumed that the
cost estimates supplied to us are accurate;
Construction Phasing
Each individual phase, unless specifically stated otherwise, has
been assumed to be constructed in one phase.
Construction Dates
Construction Dates have been taken according to the information
supplied by the Company;
Construction Costs
Construction costs have been assessed in accordance with
standard rates in the market that a third party developer /
purchaser would expect to have to pay in the course of the
development of each project. In some cases these costs differ in
their general level from the anticipated construction costs as
provided by the Company;
Construction Contract
An advance payment is included in the cost calculations, which is
charged to the first quarter of the construction contract. A holdback against defects requiring remedy is also included and is
charged to the quarter after completion of construction of the
relevant phase. The remaining construction costs are applied
equally throughout the development period;
Permit & Design Costs
Where there are outstanding permitting costs these have been
assessed in line with the anticipated numbers as supplied by the
client as there can be a wide variation in the permitting costs.
Design costs – where appropriate have been assessed in line with
market standards;
Assumed Sale
In order to assess the capital value of a completed development,
we have assumed that a property is to be held upon completion
for a period until the net income stabilizes, and thereafter is sold.
This is a valuation technique and does not necessarily represent
the intention of the owner;
Valuation Advisory
- 91 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Returns
Rental rates for retail spaces have been projected together with
capitalization rates, for the period of the cashflow. These figures
are based on research carried out by Cushman & Wakefield Stiles &
Riabokobylko and market information. In respect of commercial
rents they are exclusive of operating expenses and VAT and have
been assessed on a conservative projection of future market
movements (see market analysis). They therefore provide realistic
minimum figures that it is anticipated can be achieved;
Market Capitalization rates have been projected based on the
assessment that the property investment market for Russia will
become more sophisticated over the period and that the number
of active investors will increase. It is therefore anticipated that the
changes in market yields will reflect the experiences in other
Eastern European countries where the property investment
environment is already more mature such as Poland and the
Czech Republic and that there will be a yield compression over
time. See the commentary on market yields below;
Review / Renewal Period
This is the length of the initial leases. The rents for the initial
leases remain fixed for their entire term, in line with current
market practices where indexation and rent reviews are not
prevalent, and the rent during this period will depend upon the
prevailing market rental rate in the year of completion. The
assumed length of initial leases varies depending upon the
property class – retail leases are typically 3 to 5 years;
Vacancy Rate
Vacancy has been assumed for the duration of each project and
depends upon the property class, its size, its location, the local
market and the relative merits of each anticipated project;
Operating Expenses
It is assumed that operating expenses will be passed through to
tenants in the form of a service charge or similar;
Security Deposit
It is common for tenants to pay security deposits in the Russian
market which are held interest free by the Landlord and offset
against the last relevant period of the lease. Standard levels of
Security Deposit have been assumed for different property classes.
Valuation Advisory
- 92 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
These deposits are treated as financing cashflow and will be offsettable against the final relevant period of each lease;
Debt Assumptions
In assessing the value of property it has been assumed that no
debt is used. There are wide variations as to the financing terms
available in the as yet immature Russian property finance market
and it is not therefore possible to apply standard terms. Therefore
unleveraged yields are used to provide a consistent approach;
VAT Rate
The VAT rate has been taken at the current rate of 18%
introduced at the beginning of 2004. The VAT rate is of
importance because although in theory VAT in Russia is
immediately recoverable from the government the practice is
slightly different. The VAT paid on construction and other
development costs is considered a VAT credit account in favour
of the landowner. VAT on future rents can be retained and offset
against the VAT account until it is zeroed out. This has a
significant effect on the cashflow. For the purchase of existing
properties VAT is payable in respect of that part of the purchase
price apportioned to building improvements.
It has been assumed that all of the costs in association with the
development of the project will be subject to VAT and also that
all of the tenants (where appropriate) will be VAT paying. Where
applicable the current VAT credit account has been taken into
account – depending upon the tenure of the property. I.e.
freehold property sales are subject to VAT, but sales of shares in a
company are not. For the purposes of this Opinion all properties
have been assessed on a freehold basis as opposed to the existence
of any SPVs;
VAT Inflation Loss
The VAT credit account is ruble denominated whereas rents are
receivable in dollars. A factor is used to take account of annual
losses to the VAT credit account balance, which is non-interest
bearing, due to inflation and exchange rate movements;
Valuation Advisory
- 93 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Cash Reserve
A contingency account against future capital expenditures is a
prudent measure. Contributions to this cash reserve have been set
depending on the different criteria of each proposed development;
Agent’s & Brokers Fees
Standard market practice is to use brokers to lease commercial
space or to sell residential space. This has been taken into account;
Depreciation
Assessed over 20 years on a straight line basis, in line with local
regulations excluding that part of the balance sheet value that
relates to the underlying land value. The type of tenure affects the
annual depreciation and will therefore affect the level of costs
which are deductible for profit tax purposes. A sale of a freehold
property results in the property being held on the balance sheet at
the transaction value and usually results in a higher level of
depreciation and therefore a higher level of tax deductible costs,
potentially increasing income. Where a property is held in a
Special Purpose Vehicle (SPV) any sale of the shares will not
affect the value of the property on the balance sheet (usually the
existing depreciated construction cost) and this will ordinarily
result in a lower level of depreciation. As outlined above, all of the
properties in this report have been valued on the basis of a
freehold sale;
Taxes
all our calculations are made without taking into account profit
tax.
Similarly property tax is payable on the book value of any
property, excluding that part that relates to the underlying land
value, currently at 2.2% and the nature of the tenure will affect the
overall level of property tax payable. There may also be affects on
the level of other taxes payable due to the type of tenure. All of
these factors have been taken into account.
Financial Analysis Commentary by Use for Residential
General
The more extensive is the development of the area the more likely
it is to enhance its overall attractiveness and therefore to increase
the marketability of finished individual properties. The extent of
Valuation Advisory
- 94 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
that increase, though, is difficult to estimate and therefore exit
prices have been based largely on existing comparables.
Due to the size of the development area and the big number of
units to be constructed, the total development has been assumed
to be spread over a period of 12 years.
Costs
Construction costs were taken from the Client’s estimations taking
into consideration the standard market rates. On this basis the
overall
construction
and
development
costs
including
predevelopment costs, construction costs, utilities costs planning,
architectural and management costs have been estimated at
US$1 140 per square meter of saleable area.
Valuation Advisory
- 95 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
7
VALUATION SUMMARY
Subject to the contents of this Report and based on current values, we estimate the potential future
worth of the freehold interest in the Land, as of 28th of November 2007 based on the type of use.
The findings contained in our Report are based on calculations, conclusions and other information
obtained as a result of market research, on our expertise in the course of which we received certain
information.
We are of the opinion that the Hypothetical Value of the freehold interest in the subject land plot
detailed in Part B, as of 28 of November 2007 assuming that the documentation concerning
changing the zoning is obtained, is:
US$977 305 000
(NINE HUNDRED SEVENTY SEVEN MILLIONS THREE HUNDRED FIVE
THOUSAND US DOLLARS)
We are of the opinion that the Hypothetical Value Indication of the freehold interest in the subject
land plot detailed in Part B, as of 28 November 2007, assuming that all the necessary legal
permissions required for starting the construction works are in place, is:
US$1 058 853 000
(ONE BILLION FIFTY EIGHT MILLIONS EIGHT HUNDRED FIFTY THREE
THOUSAND US DOLLARS)
Valuation Advisory
- 96 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
C
APPENDICES
Valuation Advisory
- 97 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
APPENDIX I PHOTOGRAPHS OF THE PROPERTY
Land plot views
Bus stop
Gas substation
Border with the of Pulkovskaya Observatory
service staff village
Outside view
Outside view
Border with the Observatory territory
Valuation Advisory
- 98 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
APPENDIX II ANALYSIS
Valuation Advisory
- 99 -
Valuation Advisory
Valuation Date
Exchange Rate
Land area
Land Acquisition Cost
Demolition Costs
Structures for Demolition
Dredging Costs
Dredging Volume
Design & Construction Costs
Retail 1
Retail 2
Retail 3
Retail 4
Retail 5
Retail 6
Retail 7
Retail 8
Retail 9
Retail 10
Surface Parking
Structured Parking
Underground Parking
Utilities
Developer's Fee
Permit & Design Costs
Total Design & Construction Costs
Unplanned Expenditure (% of Total Design & Construction Costs)
Completion Condition
Construction Costs Inflation Rate
Fit-out Period
Permit & Design Costs
VAT Rate
Percentage of Project Subject to VAT (est.)
Percentage of Tenants Paying VAT
VAT Inflation Loss
Maximum Equity Required
Contribution to Cash Reserve (% of gross income)
Interest on Cash Reseve
Operating Expenses (% of annual rent)
Security Deposit
Review / Renewal Period
Review / Renewal Period for Anchors
Agent's Fees on Acquisition (% of land acquisition costs)
Broker's Fees on Leasing (% of annual rent)
Depreciation Rate for Buildings
Accelerating Multiple for Depreciation
Maintenance Costs
Maintenance Costs Growth Rate
Property Tax Rate
Profit Tax Rate
Advance Payment for Construction
Hold Back on Construction
Assumptions - Template
18%
100%
100%
0%
835,63
1,25%
0%
0%
3
1
1
1%
9%
2%
1
0
0%
2,20%
24%
20%
5%
%
Months
%
%
%
%
$mln
%
%
%
Months
Years
Years
%
%
%
Units
$/sqm
%
%
%
%
%
- 100 -
1 100
1 100
1 000
1 000
1 000
1 000
1 000
1 000
1 000
1 000
2 500
10 000
15 000
110
0
0
159 720 000
5%
Shell & Core
0%
3
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/sqm
$/place
$/place
$/place
$/sqm
$/sqm
$/sqm
%
Amount
28-Nov-07
25,00
239,07
3 240 515
0
10000
0
8000
Units
Date
RUR
Ha
$/Ha
$/cum
cum
$/cum
cum
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Phase 7
Phase 8
Phase 9
Phase 10
Final Disposal
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Design & Permit
Works Start
Jul-09
Jan-11
Jul-12
Jan-14
Jul-15
Jan-17
Jul-18
Jan-20
Jan-20
Jan-20
Design & Permit
Works End
Dec-10
Jun-12
Dec-13
Jun-15
Dec-16
Jun-18
Dec-19
Jun-21
Jun-21
Jun-21
Construction
Commencement
Jul-09
Jan-11
Jul-12
Jan-14
Jul-15
Jan-17
Jul-18
Jan-20
Jan-20
Jan-20
Construction
Completion
Dec-10
Jun-12
Dec-13
Jun-15
Dec-16
Jun-18
Dec-19
Jun-21
Jun-21
Jun-21
Mar-11
Sep-12
Mar-14
Sep-15
Mar-17
Sep-18
Mar-20
Sep-21
Sep-21
Sep-21
Fitted Out
0
26,00%
774 713 098
1,00
Adjustment to Market Rent Level
1,00
%
1,00
Sensitivity Factor
1,00
1,00
NPV
Discount Rate
Property Value
1,00
Dec-11
Jun-13
Dec-14
Jun-16
Dec-17
Jun-19
Dec-20
Jun-22
Jun-22
Jun-22
Review
Dec-11
Jun-13
Dec-14
Jun-16
Dec-17
Jun-19
Dec-20
Jun-22
Jun-22
Jun-22
Review - Anchors
Mar-12
Sep-13
Mar-15
Sep-16
Mar-18
Sep-19
Mar-21
Sep-22
Sep-22
Sep-22
Sep-22
Disposal
6
12
18
24
30
36
42
42
42
53
Delay (Qtrs)
Valuation Advisory
Zone 1 Retail 1
Zone 2 Retail 2
Total sqm (excl. Parking)
Total Parking (spaces)
Description
- 101 -
Project Outline - Template
Total area
(sqm)
32 000
100 000
132 000
0
13%
0%
4 000
0
Phase1
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
13%
0%
4 000
0
Phase2
13%
0%
4 000
0
Phase3
13%
50%
54 000
0
Phase4
13%
50%
54 000
0
Phase5
13%
0%
4 000
0
Phase6
13%
0%
4 000
0
Phase7
13%
0%
4 000
0
Phase8
Zone 2
Zone 1
0
0
0
0
Total Rent
Rent/sq. m.
Cost/sq. m.
Sq. m.
Total Rent
Rent/sq. m.
Cost/sq. m.
Sq. m.
Valuation Advisory
0
Retail 2
0
0
0
0
0
0
0
Retail 1
0
0
0
- 102 -
0
0
0
0
1 519 053
380
1 100
4 000
Phase 1
0
0
0
0
1 739 164
435
1 100
4 000
Phase 2
0
0
0
0
1 860 906
465
1 100
4 000
Phase 3
30 927 351
619
1 100
50 000
2 130 551
533
1 100
4 000
Phase 4
Phase Summary - Template
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
33 092 266
662
1 100
50 000
2 279 689
570
1 100
4 000
Phase 5
0
0
0
0
2 610 016
653
1 100
4 000
Phase 6
0
0
0
0
2 792 718
698
1 100
4 000
Phase 7
0
0
0
0
3 197 382
799
1 100
4 000
Phase 8
567
1 100
32 000
64 019 617
640
1 100
100 000
18 129 480
Total
132 000
4 000
4 000
0
4 000
4 000
2 390 710
4 000
4 000
4 000
0
4 000
110
0
1 100
0
4 730
0
3
34
201 822
380
0
0
Valuation Advisory
Acquisition Costs
Demolition Costs (cum)
Dredging Costs (cum)
Construction Costs
Utilities
Developer's Fee
Buildings Costs
Parking Costs (Spaces)
Total Construction, Demolition and Dredging Costs
Permit & Design Costs
Unplanned Expenditures
Agent's Fees on Acquisition
Broker's Leasing Fees
VAT
Total Investment (Incl. VAT)
Total Rent
Total Parking Rent (Spaces)
Operating Expenses
14 520 000
0
4 400 000
0
18 920 000
0
946 000
7 747 131
136 715
4 824 692
807 287 636
1 519 053
0
0
1 399
435
0
0
39
0
1 100
0
1 100
0
1 402
465
0
0
42
0
1 100
0
1 100
0
4 000 167 482
822 147
4 000 5 609 628
4 000 1 860 906
0
0
0
4 000
0
4 000
4 000 4 400 000
0
0
4 000 4 400 000
0
4 000
220 000
Phase 3
Per sqm, $ Total, sqm Total, $
- 103 -
4 000 156 525
820 174
4 000 5 596 699
4 000 1 739 164
0
0
0
4 000
0
4 000
4 000 4 400 000
0
0
4 000 4 400 000
0
4 000
220 000
Phase 1
Phase 2
Per sqm, $ Total, sqm Total, $
Per sqm, $ Total, sqm Total, $
324 2 390 710 774 713 098
0
0
10 000
0
0
8 000
1 418
612
0
0
55
0
1 100
0
1 100
0
2 975 211
11 227 538
54 000 76 572 749
54 000 33 057 902
0
0
0
54 000
54 000
0
54 000
54 000 59 400 000
0
0
54 000 59 400 000
0
54 000
2 970 000
Phase 4
Per sqm, $ Total, sqm Total, $
1 423
655
0
0
59
0
1 100
0
1 100
0
54 000 3 183 476
11 265 026
54 000 76 818 502
54 000 35 371 955
0
0
0
54 000
0
54 000
54 000 59 400 000
0
0
54 000 59 400 000
0
54 000
2 970 000
Phase 5
Per sqm, $ Total, sqm Total, $
Base Calculations - Template
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
1 422
653
0
0
59
0
1 100
0
1 100
0
4 000 234 901
834 282
4 000 5 689 184
4 000 2 610 016
0
0
0
4 000
0
4 000
4 000 4 400 000
0
0
4 000 4 400 000
0
4 000
220 000
Phase 6
Per sqm, $ Total, sqm Total, $
1 427
698
0
0
63
0
1 100
0
1 100
0
251 345
837 242
4 000 5 708 587
4 000 2 792 718
0
0
0
4 000
4 000
0
4 000
4 000 4 400 000
0
0
4 000 4 400 000
0
4 000
220 000
Phase 7
Per sqm, $ Total, sqm Total, $
1 438
799
0
0
72
0
1 100
0
1 100
0
4 000 287 764
843 798
4 000 5 751 562
4 000 3 197 382
0
0
0
4 000
0
4 000
4 000 4 400 000
0
0
4 000 4 400 000
0
4 000
220 000
Phase 8
Per sqm, $ Total, sqm Total, $
7 493
622
0
0
3
115
110
0
1 100
0
1 210
0
132 000 14 520 000
0
132 000
132 000 145 200 000
0
0
132 000 159 720 000
0
132 000
7 986 000
0
7 747 131
2 390 710
7 393 419
132 000
0 31 474 899
132 000 989 034 546
132 000 82 149 097
0
0
132 000
0
Total
Per sqm Total sqm
Total / $
324 2 390 710 774 713 098
0
0
10 000
0
0
8 000
0
1
2
3
Dec-09
13%
17%
0
2 365 000
0
2 365 000
0
Mar-10
13%
17%
0
2 365 000
0
2 365 000
0
Jun-11
13%
17%
0
550 000
0
550 000
0
Sep-11
13%
17%
0
550 000
0
550 000
0
Dec-12
13%
17%
0
550 000
0
550 000
0
Mar-13
13%
17%
0
550 000
0
550 000
0
Jun-14
13%
17%
0
7 425 000
0
7 425 000
0
Sep-14
13%
17%
0
7 425 000
0
7 425 000
0
Dec-15
13%
17%
0
7 425 000
0
7 425 000
0
Mar-16
13%
17%
0
7 425 000
0
7 425 000
0
Jun-17
13%
17%
0
550 000
0
550 000
0
Sep-17
13%
17%
0
550 000
0
550 000
0
Dec-18
13%
17%
0
550 000
0
550 000
0
Mar-19
13%
17%
0
550 000
0
550 000
0
Mar-20
33%
17%
880 000
550 000
0
1 430 000
0
Jun-20
13%
17%
0
550 000
0
550 000
0
Sep-20
13%
17%
0
550 000
0
550 000
0
Construction Period
Start Date
Jan-20 End Date
Permit & Design Period
Start Date
Jan-20 End Date
Sep-18
33%
17%
880 000
550 000
0
1 430 000
0
Construction Period
Start Date
Jul-18 End Date
Permit & Design Period
Start Date
Jul-18 End Date
Mar-17
33%
17%
880 000
550 000
0
1 430 000
0
Construction Period
Start Date
Jan-17 End Date
Permit & Design Period
Start Date
Jan-17 End Date
Sep-15
33%
17%
11 880 000
7 425 000
0
19 305 000
0
Construction Period
Start Date
Jul-15 End Date
Permit & Design Period
Start Date
Jul-15 End Date
Mar-14
33%
17%
11 880 000
7 425 000
0
19 305 000
0
Construction Period
Start Date
Jan-14 End Date
Permit & Design Period
Start Date
Jan-14 End Date
Sep-12
33%
17%
880 000
550 000
0
1 430 000
0
Construction Period
Start Date
Jul-12 End Date
Permit & Design Period
Start Date
Jul-12 End Date
Mar-11
33%
17%
880 000
550 000
0
1 430 000
0
Construction Period
Start Date
Jan-11 End Date
Permit & Design Period
Start Date
Jan-11 End Date
Sep-09
33%
17%
3 784 000
2 365 000
0
6 149 000
0
Construction Period
Start Date
Jul-09 End Date
Permit & Design Period
Start Date
Jul-09 End Date
Valuation Advisory
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 8
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 7
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 6
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 5
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 4
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 3
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 2
Quarter Ending
Phase Construction Costs Breakdown
Phase Design & Permit Costs Breakdown
Advance Construction Payment
Construction Payment
Hold Back
Total Construction Costs
Permit and Design Costs
Phase 1
Dec-20
13%
17%
0
550 000
0
550 000
0
6
Jun-21
6
Jun-21
Jun-19
13%
17%
0
550 000
0
550 000
0
6
Dec-19
6
Dec-19
Dec-17
13%
17%
0
550 000
0
550 000
0
6
Jun-18
6
Jun-18
Jun-16
13%
17%
0
7 425 000
0
7 425 000
0
6
Dec-16
6
Dec-16
Dec-14
13%
17%
0
7 425 000
0
7 425 000
0
6
Jun-15
6
Jun-15
Jun-13
13%
17%
0
550 000
0
550 000
0
6
Dec-13
6
Dec-13
Dec-11
13%
17%
0
550 000
0
550 000
0
6
Jun-12
6
Jun-12
Jun-10
13%
17%
0
2 365 000
0
2 365 000
0
6
Dec-10
6
Dec-10
4
Mar-21
13%
17%
0
550 000
0
550 000
0
Sep-19
13%
17%
0
550 000
0
550 000
0
Mar-18
13%
17%
0
550 000
0
550 000
0
Sep-16
13%
17%
0
7 425 000
0
7 425 000
0
Mar-15
13%
17%
0
7 425 000
0
7 425 000
0
Sep-13
13%
17%
0
550 000
0
550 000
0
Mar-12
13%
17%
0
550 000
0
550 000
0
Sep-10
13%
17%
0
2 365 000
0
2 365 000
0
5
Jun-21
13%
17%
0
550 000
0
550 000
0
Dec-19
13%
17%
0
550 000
0
550 000
0
Jun-18
13%
17%
0
550 000
0
550 000
0
Dec-16
13%
17%
0
7 425 000
0
7 425 000
0
Jun-15
13%
17%
0
7 425 000
0
7 425 000
0
Dec-13
13%
17%
0
550 000
0
550 000
0
Jun-12
13%
17%
0
550 000
0
550 000
0
Dec-10
13%
17%
0
2 365 000
0
2 365 000
0
6
Sep-21
5%
0%
0
0
220 000
220 000
0
Mar-20
5%
0%
0
0
220 000
220 000
0
Sep-18
5%
0%
0
0
220 000
220 000
0
Mar-17
5%
0%
0
0
2 970 000
2 970 000
0
Sep-15
5%
0%
0
0
2 970 000
2 970 000
0
Mar-14
5%
0%
0
0
220 000
220 000
0
Sep-12
5%
0%
0
0
220 000
220 000
0
Mar-11
5%
0%
0
0
946 000
946 000
0
7
Mar-22
0%
0%
0
0
0
0
0
Sep-20
0%
0%
0
0
0
0
0
Mar-19
0%
0%
0
0
0
0
0
Sep-17
0%
0%
0
0
0
0
0
Mar-16
0%
0%
0
0
0
0
0
Sep-14
0%
0%
0
0
0
0
0
Mar-13
0%
0%
0
0
0
0
0
Sep-11
0%
0%
0
0
0
0
0
9
- 104 -
Dec-21
0%
0%
0
0
0
0
0
Jun-20
0%
0%
0
0
0
0
0
Dec-18
0%
0%
0
0
0
0
0
Jun-17
0%
0%
0
0
0
0
0
Dec-15
0%
0%
0
0
0
0
0
Jun-14
0%
0%
0
0
0
0
0
Dec-12
0%
0%
0
0
0
0
0
Jun-11
0%
0%
0
0
0
0
0
8
Jun-22
0%
0%
0
0
0
0
0
Dec-20
0%
0%
0
0
0
0
0
Jun-19
0%
0%
0
0
0
0
0
Dec-17
0%
0%
0
0
0
0
0
Jun-16
0%
0%
0
0
0
0
0
Dec-14
0%
0%
0
0
0
0
0
Jun-13
0%
0%
0
0
0
0
0
Sep-22
0%
0%
0
0
0
0
0
Mar-21
0%
0%
0
0
0
0
0
Sep-19
0%
0%
0
0
0
0
0
Mar-18
0%
0%
0
0
0
0
0
Sep-16
0%
0%
0
0
0
0
0
Mar-15
0%
0%
0
0
0
0
0
Sep-13
0%
0%
0
0
0
0
0
Mar-12
0%
0%
0
0
0
0
0
11
Dec-22
0%
0%
0
0
0
0
0
Jun-21
0%
0%
0
0
0
0
0
Dec-19
0%
0%
0
0
0
0
0
Jun-18
0%
0%
0
0
0
0
0
Dec-16
0%
0%
0
0
0
0
0
Jun-15
0%
0%
0
0
0
0
0
Dec-13
0%
0%
0
0
0
0
0
Jun-12
0%
0%
0
0
0
0
0
12
Phase Costs - Template
Dec-11
0%
0%
0
0
0
0
0
10
Mar-23
0%
0%
0
0
0
0
0
Sep-21
0%
0%
0
0
0
0
0
Mar-20
0%
0%
0
0
0
0
0
Sep-18
0%
0%
0
0
0
0
0
Mar-17
0%
0%
0
0
0
0
0
Sep-15
0%
0%
0
0
0
0
0
Mar-14
0%
0%
0
0
0
0
0
Sep-12
0%
0%
0
0
0
0
0
13
Jun-23
0%
0%
0
0
0
0
0
Dec-21
0%
0%
0
0
0
0
0
Jun-20
0%
0%
0
0
0
0
0
Dec-18
0%
0%
0
0
0
0
0
Jun-17
0%
0%
0
0
0
0
0
Dec-15
0%
0%
0
0
0
0
0
Jun-14
0%
0%
0
0
0
0
0
Dec-12
0%
0%
0
0
0
0
0
14
Sep-23
0%
0%
0
0
0
0
0
Mar-22
0%
0%
0
0
0
0
0
Sep-20
0%
0%
0
0
0
0
0
Mar-19
0%
0%
0
0
0
0
0
Sep-17
0%
0%
0
0
0
0
0
Mar-16
0%
0%
0
0
0
0
0
Sep-14
0%
0%
0
0
0
0
0
Mar-13
0%
0%
0
0
0
0
0
15
Dec-23
0%
0%
0
0
0
0
0
Jun-22
0%
0%
0
0
0
0
0
Dec-20
0%
0%
0
0
0
0
0
Jun-19
0%
0%
0
0
0
0
0
Dec-17
0%
0%
0
0
0
0
0
Jun-16
0%
0%
0
0
0
0
0
Dec-14
0%
0%
0
0
0
0
0
Jun-13
0%
0%
0
0
0
0
0
16
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Mar-24
0%
0%
0
0
0
0
0
Sep-22
0%
0%
0
0
0
0
0
Mar-21
0%
0%
0
0
0
0
0
Sep-19
0%
0%
0
0
0
0
0
Mar-18
0%
0%
0
0
0
0
0
Sep-16
0%
0%
0
0
0
0
0
Mar-15
0%
0%
0
0
0
0
0
Sep-13
0%
0%
0
0
0
0
0
17
Jun-24
0%
0%
0
0
0
0
0
Dec-22
0%
0%
0
0
0
0
0
Jun-21
0%
0%
0
0
0
0
0
Dec-19
0%
0%
0
0
0
0
0
Jun-18
0%
0%
0
0
0
0
0
Dec-16
0%
0%
0
0
0
0
0
Jun-15
0%
0%
0
0
0
0
0
Dec-13
0%
0%
0
0
0
0
0
18
Sep-24
0%
0%
0
0
0
0
0
Mar-23
0%
0%
0
0
0
0
0
Sep-21
0%
0%
0
0
0
0
0
Mar-20
0%
0%
0
0
0
0
0
Sep-18
0%
0%
0
0
0
0
0
Mar-17
0%
0%
0
0
0
0
0
Sep-15
0%
0%
0
0
0
0
0
Mar-14
0%
0%
0
0
0
0
0
19
Dec-24
0%
0%
0
0
0
0
0
Jun-23
0%
0%
0
0
0
0
0
Dec-21
0%
0%
0
0
0
0
0
Jun-20
0%
0%
0
0
0
0
0
Dec-18
0%
0%
0
0
0
0
0
Jun-17
0%
0%
0
0
0
0
0
Dec-15
0%
0%
0
0
0
0
0
Jun-14
0%
0%
0
0
0
0
0
20
Mar-25
0%
0%
0
0
0
0
0
Sep-23
0%
0%
0
0
0
0
0
Mar-22
0%
0%
0
0
0
0
0
Sep-20
0%
0%
0
0
0
0
0
Mar-19
0%
0%
0
0
0
0
0
Sep-17
0%
0%
0
0
0
0
0
Mar-16
0%
0%
0
0
0
0
0
Sep-14
0%
0%
0
0
0
0
0
21
Jun-25
0%
0%
0
0
0
0
0
Dec-23
0%
0%
0
0
0
0
0
Jun-22
0%
0%
0
0
0
0
0
Dec-20
0%
0%
0
0
0
0
0
Jun-19
0%
0%
0
0
0
0
0
Dec-17
0%
0%
0
0
0
0
0
Jun-16
0%
0%
0
0
0
0
0
Dec-14
0%
0%
0
0
0
0
0
22
Sep-25
0%
0%
0
0
0
0
0
Mar-24
0%
0%
0
0
0
0
0
Sep-22
0%
0%
0
0
0
0
0
Mar-21
0%
0%
0
0
0
0
0
Sep-19
0%
0%
0
0
0
0
0
Mar-18
0%
0%
0
0
0
0
0
Sep-16
0%
0%
0
0
0
0
0
Mar-15
0%
0%
0
0
0
0
0
23
Dec-25
0%
0%
0
0
0
0
0
Jun-24
0%
0%
0
0
0
0
0
Dec-22
0%
0%
0
0
0
0
0
Jun-21
0%
0%
0
0
0
0
0
Dec-19
0%
0%
0
0
0
0
0
Jun-18
0%
0%
0
0
0
0
0
Dec-16
0%
0%
0
0
0
0
0
Jun-15
0%
0%
0
0
0
0
0
24
Mar-26
0%
0%
0
0
0
0
0
Sep-24
0%
0%
0
0
0
0
0
Mar-23
0%
0%
0
0
0
0
0
Sep-21
0%
0%
0
0
0
0
0
Mar-20
0%
0%
0
0
0
0
0
Sep-18
0%
0%
0
0
0
0
0
Mar-17
0%
0%
0
0
0
0
0
Sep-15
0%
0%
0
0
0
0
0
25
880 000
3 300 000
220 000
4 400 000
0
880 000
-880 000
0
0
0
880 000
-880 000
0
0
0
11 880 000
44 550 000
2 970 000
59 400 000
0
11 880 000
44 550 000
2 970 000
59 400 000
0
880 000
3 300 000
220 000
4 400 000
0
880 000
3 300 000
220 000
4 400 000
0
3 784 000
14 190 000
946 000
18 920 000
0
Total
Valuation Advisory
Sale price
Growth rate
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Growth rate
2007
2008
2009
2010
2011
2012
2013
2014
2015
Construction Costs
Total
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Phase 7
Phase 8
Total Areas
Valuation Date
Land Acquisition Costs
100%
13%
13%
13%
13%
13%
13%
13%
13%
Underground
Parking,
25 000
3 125
3 125
3 125
3 125
3 125
3 125
3 125
3 125
%
100%
13%
13%
13%
13%
13%
13%
13%
13%
Surface
Parking
6 250
781
781
781
781
781
781
781
781
- 105 -
5,0%
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
Residential'',
Residential''',
sqm
sqm
5,0%
5,0%
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
Underground Surface
Residential'',
Residential''',
Parking,
Parking
sqm
sqm
5%
5%
5%
5%
20 000,00
2 500,00
0,00
0,00
21 000,00
2 625,00
0,00
0,00
22 050,00
2 756,25
0,00
0,00
23 152,50
2 894,06
0,00
0,00
24 310,13
3 038,77
0,00
0,00
25 525,63
3 190,70
0,00
0,00
26 801,91
3 350,24
0,00
0,00
28 142,01
3 517,75
0,00
0,00
29 549,11
3 693,64
0,00
0,00
%
Residential,
Underground Surface
sqm
Parking,
Parking
5,0%
5,0%
2 700,00
32 000,00
2 835,00
33 600,00
2 976,75
35 280,00
3 125,59
37 044,00
3 281,87
38 896,20
3 445,96
40 841,01
3 618,26
42 883,06
3 799,17
45 027,21
3 989,13
47 278,57
4 188,59
49 642,50
4 398,02
52 124,63
4 617,92
54 730,86
4 848,81
57 467,40
5 091,25
60 340,77
5 345,82
63 357,81
5%
1 140,00
1 197,00
1 256,85
1 319,69
1 385,68
1 454,96
1 527,71
1 604,09
1 684,30
Residential,
sqm
Residential,
sqm
2 100 000
262 500
262 500
262 500
262 500
262 500
262 500
262 500
262 500
28-Nov-07
$0
Residential - Template
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
%
100%
13%
13%
13%
13%
13%
13%
13%
13%
Residential'',
sqm
0
0
0
0
0
0
0
0
0
%
100%
10%
10%
10%
10%
10%
10%
10%
10%
Residential''',
sqm
0
0
0
0
0
0
0
0
0
%
100%
10%
10%
10%
10%
10%
10%
10%
10%
0
0
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
0
0
0
0
0
0
0
0
0
0
18%
2%
24%
23,0%
113 654 922
481 973 555
1 647 752 378
4 012 808 192
Total for All Phases
Total Cashflow
Period
Total Discounted Cashflow
Assumptions
VAT
Agent's Commission Fee
Income Tax
Discount rate
EBITDA per annum
Net Present Value (NPV)
Total Expenditures
Total Construction Costs
31-Mar-08
1Q2008
0
1
0
0
0
0
1
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
0
0
1
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
0
0
1
0
0
0
0
0
0
0
30-Jun-08
2Q2008
0
2
0
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Jun-08
2Q2008
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-08
2Q2008
30-Sep-08
3Q2008
0
3
0
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
20%
0
0
0
0
30-Sep-08
3Q2008
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-08
3Q2008
31-Dec-08
4Q2008
0
4
0
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Dec-08
4Q2008
0
0
0
4
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-08
4Q2008
31-Mar-09
1Q2009
0
5
0
0
0
0
5
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
6
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-09
2Q2009
0
0
0
0
31-Mar-09
1Q2009
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-09
1Q2009
Valuation Advisory
0
0
0
0
0
31-Dec-07
4Q2007
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
0
0
0
0
0
0
0
20%
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-07
4Q2007
0
0
0
0
0
0
Phase 8
0
0
0
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
0
20%
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-07
4Q2007
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
Phase 7
0
0
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
20%
0
0
0
0
31-Dec-07
4Q2007
0
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
Phase 6
0
0
0
1
0
0
0
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
0
0
0
0
0
0
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
0
0
1
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
0
0
1
0
0
0
0
0
0
0
0
20%
0
0
0
0
31-Mar-08
1Q2008
0
0
0
1
0
0
0
0
0
0
0
0
20%
0
0
0
0
0
0
0
0
0
0
0
20%
0
0
0
0
0
0
0
1
0
31-Mar-08
1Q2008
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-07
4Q2007
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
Phase 5
0
0
0
0
0
0
0
20%
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-07
4Q2007
0
0
0
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
Phase 4
0
0
0
0
0
0
0
20%
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-07
4Q2007
0
0
0
0
0
0
Phase 3
0
0
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
0
20%
0
0
0
0
Base for Taxation
Income Tax
Cash Flow
Period
Discounted Cashflow
Sells Breakdown, %
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
Phase 2
31-Dec-07
4Q2007
0
0
0
0
0
0
0
Reduction in Book Value
Sell (Advance Payments)
Sell (After Construction Completion)
VAT Received
Agent's Commission Fee
Revenue
0
0
0
0
0
0
0
0
0
0
Sells Breakdown, %
0
31-Mar-08
1Q2008
0
0
0
0
31-Dec-07
4Q2007
0
0
Phase 1
Land Aqusition Costs
Construction Costs Breakdown, %
Construction Costs, $
Soft Costs Breakdown, %
Soft Costs, $
VAT Paid
Total Expenditures
Book Value
31-Dec-09
4Q2009
7%
30-Sep-09
3Q2009
-21 101 540
7
-14 688 593
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
0
7
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-09
3Q2009
0
0
-21 101 540
7
-14 688 593
31-Dec-09
4Q2009
-2 589 273
8
-1 711 463
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-09
4Q2009
0
0
-2 589 273
8
-1 711 463
0
62 415 281
0
7 217 689
-1 248 306
61 166 976
3%
0
26 749 406
0
0
-534 988
26 214 418
0
10 826 533
70 973 937
100 245 674
15%
60 147 404
0
7 217 689
47 315 958
40 098 270
10%
40 098 270
30-Sep-09
3Q2009
31-Mar-10
1Q2010
-21 627 394
9
-13 574 308
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
0
9
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-10
1Q2010
0
0
-21 627 394
9
-13 574 308
0
93 622 922
0
10 826 533
-1 872 458
91 750 463
10%
0
18 946 432
124 204 390
205 503 631
25%
105 257 958
31-Mar-10
1Q2010
30-Jun-10
2Q2010
78 242 969
10
46 631 839
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-10
2Q2010
0
0
78 242 969
10
46 631 839
0
187 245 844
0
18 946 432
-3 744 917
183 500 927
20%
0
18 946 432
124 204 390
310 761 589
25%
105 257 958
30-Jun-10
2Q2010
30-Sep-10
3Q2010
173 799 957
11
98 358 208
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
0
11
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-10
3Q2010
0
0
173 799 957
11
98 358 208
0
234 057 305
0
18 946 432
-4 681 146
229 376 159
25%
0
11 367 859
74 522 634
373 916 363
15%
63 154 775
30-Sep-10
3Q2010
31-Dec-10
4Q2010
145 187 030
12
78 021 175
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
0
12
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-10
4Q2010
0
0
145 187 030
12
78 021 175
0
187 245 844
0
11 367 859
-3 744 917
183 500 927
20%
0
7 578 573
49 681 756
416 019 546
10%
42 103 183
31-Dec-10
4Q2010
30-Jun-11
2Q2011
38 745 996
14
18 774 092
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-11
2Q2011
0
0
-2 854 673
14
-1 383 211
0
68 812 848
0
7 957 502
-1 376 257
67 436 591
7%
0
11 936 252
78 248 766
110 520 855
15%
66 312 513
30-Jun-11
2Q2011
27 368 016
-6 568 324
41 600 669
14
20 157 303
20 800 977
0
49 152 034
0
-983 041
48 168 993
5%
0
0
0
0
0
30-Jun-11
2Q2011
30-Sep-11
3Q2011
-22 140 370
15
-10 186 869
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
0
0
-22 140 370
15
-10 186 869
0
98 304 068
0
11 936 252
-1 966 081
96 337 987
10%
0
19 893 754
130 414 609
221 041 711
25%
110 520 855
30-Sep-11
3Q2011
0
0
0
15
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-11
3Q2011
- 106 -
31-Mar-11
1Q2011
-33 738 917
13
-17 216 288
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-11
1Q2011
0
0
-23 264 448
13
-11 871 378
0
29 491 220
0
0
-589 824
28 901 396
3%
0
7 957 502
52 165 844
44 208 342
10%
44 208 342
31-Mar-11
1Q2011
476 629 287
-114 391 029
-10 474 469
13
-5 344 910
395 218 569
0
98 304 068
7 578 573
-1 966 081
96 337 987
10%
0
0
0
20 800 977
0
31-Mar-11
1Q2011
31-Dec-11
4Q2011
82 155 118
16
35 893 365
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
0
0
82 155 118
16
35 893 365
0
196 608 136
0
19 893 754
-3 932 163
192 675 973
20%
0
19 893 754
130 414 609
331 562 566
25%
110 520 855
31-Dec-11
4Q2011
0
0
0
16
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-11
4Q2011
31-Mar-12
1Q2012
190 619 765
17
79 080 828
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
0
0
190 619 765
17
79 080 828
0
258 048 178
0
19 893 754
-5 160 964
252 887 215
25%
0
12 533 065
82 161 204
401 190 705
15%
69 628 139
31-Mar-12
1Q2012
0
0
0
17
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-12
1Q2012
30-Jun-12
2Q2012
160 068 701
18
63 057 017
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
0
0
160 068 701
18
63 057 017
0
206 438 543
0
12 533 065
-4 128 771
202 309 772
20%
0
8 355 377
54 774 136
447 609 464
10%
46 418 759
30-Jun-12
2Q2012
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-12
2Q2012
7%
30-Sep-12
3Q2012
-38 871 366
19
-14 540 540
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
0
0
-24 427 670
19
-9 137 613
31-Dec-12
4Q2012
40 812 763
20
14 496 743
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
0
-2 997 407
20
-1 064 683
0
72 253 490
0
8 355 377
-1 445 070
70 808 420
3%
0
30 965 781
0
0
-619 316
30 346 466
0
12 533 065
82 161 204
116 046 898
15%
69 628 139
31-Dec-12
4Q2012
28 196 970
-6 767 273
43 810 170
20
15 561 426
22 380 473
0
51 609 636
0
-1 032 193
50 577 443
5%
0
0
0
0
0
31-Dec-12
4Q2012
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-12
4Q2012
0
8 355 377
54 774 136
46 418 759
10%
46 418 759
30-Sep-12
3Q2012
516 474 828
-123 953 959
-14 443 696
19
-5 402 927
425 228 991
0
103 219 271
8 355 377
-2 064 385
101 154 886
10%
0
0
0
22 380 473
0
30-Sep-12
3Q2012
0
0
0
19
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-12
3Q2012
31-Mar-13
1Q2013
-25 036 412
21
-8 444 428
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
-25 036 412
21
-8 444 428
0
108 380 235
0
12 533 065
-2 167 605
106 212 630
10%
0
21 932 864
143 782 107
237 896 141
25%
121 849 243
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
0
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-13
1Q2013
30-Jun-13
2Q2013
90 576 017
22
29 009 157
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
90 576 017
22
29 009 157
0
216 760 470
0
21 932 864
-4 335 209
212 425 260
20%
0
21 932 864
143 782 107
359 745 384
25%
121 849 243
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
0
0
0
22
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-13
2Q2013
30-Sep-13
3Q2013
201 195 175
23
61 187 565
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
201 195 175
23
61 187 565
0
270 950 587
0
21 932 864
-5 419 012
265 531 576
25%
0
13 159 718
86 269 264
432 854 930
15%
73 109 546
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
0
0
0
23
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-13
3Q2013
31-Dec-13
4Q2013
168 072 136
24
48 536 119
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
168 072 136
24
48 536 119
0
216 760 470
0
13 159 718
-4 335 209
212 425 260
20%
0
8 773 146
57 512 843
481 594 627
10%
48 739 697
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-13
4Q2013
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
31-Mar-14
1Q2014
-39 057 014
25
-10 710 065
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
0
0
-26 931 506
25
-7 385 054
0
34 139 774
0
0
-682 795
33 456 979
3%
0
9 211 803
60 388 485
51 176 682
10%
51 176 682
31-Mar-14
1Q2014
551 757 978
-132 421 915
-12 125 508
25
-3 325 010
457 514 896
0
113 799 247
8 773 146
-2 275 985
111 523 262
10%
0
0
0
24 079 731
0
31-Mar-14
1Q2014
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
0
0
0
25
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-14
1Q2014
30-Jun-14
2Q2014
44 853 334
26
11 679 157
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
0
0
-3 304 641
26
-860 481
0
79 659 473
0
9 211 803
-1 593 189
78 066 283
7%
0
13 817 704
90 582 727
127 941 705
15%
76 765 023
30-Jun-14
2Q2014
31 681 900
-7 603 656
48 157 975
26
12 539 638
24 079 731
0
56 899 623
0
-1 137 992
55 761 631
5%
0
0
0
0
0
30-Jun-14
2Q2014
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
0
0
0
26
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-14
2Q2014
30-Sep-14
3Q2014
-25 630 246
27
-6 337 140
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
-25 630 246
27
-6 337 140
0
113 799 247
0
13 817 704
-2 275 985
111 523 262
10%
0
23 029 507
150 971 212
255 883 410
25%
127 941 705
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
0
0
0
27
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-14
3Q2014
31-Dec-14
4Q2014
95 104 818
28
22 328 870
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
95 104 818
28
22 328 870
0
227 598 493
0
23 029 507
-4 551 970
223 046 523
20%
0
23 029 507
150 971 212
383 825 116
25%
127 941 705
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
0
0
0
28
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-14
4Q2014
31-Mar-15
1Q2015
220 666 205
29
49 195 318
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
220 666 205
29
49 195 318
0
298 723 023
0
23 029 507
-5 974 460
292 748 562
25%
0
14 508 589
95 111 864
464 428 390
15%
80 603 274
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
0
0
0
29
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-15
1Q2015
30-Jun-15
2Q2015
185 299 530
30
39 227 080
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
185 299 530
30
39 227 080
0
238 978 418
0
14 508 589
-4 779 568
234 198 850
20%
0
9 672 393
63 407 909
518 163 906
10%
53 735 516
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
0
0
0
30
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-15
2Q2015
7%
30-Sep-15
3Q2015
-44 998 465
31
-9 045 511
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
0
0
-28 278 082
31
-5 684 409
31-Dec-15
4Q2015
47 245 875
32
9 018 265
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
0
-3 469 873
32
-662 327
0
83 642 446
0
9 672 393
-1 672 849
81 969 597
3%
0
35 846 763
0
0
-716 935
35 129 827
0
14 508 589
95 111 864
134 338 790
15%
80 603 274
31-Dec-15
4Q2015
32 641 517
-7 833 964
50 715 748
32
9 680 593
25 908 195
0
59 744 605
0
-1 194 892
58 549 712
5%
0
0
0
0
0
31-Dec-15
4Q2015
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
0
0
32
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-15
4Q2015
0
9 672 393
63 407 909
53 735 516
10%
53 735 516
30-Sep-15
3Q2015
597 884 173
-143 492 201
-16 720 384
31
-3 361 101
492 255 711
0
119 489 209
9 672 393
-2 389 784
117 099 425
10%
0
0
0
25 908 195
0
30-Sep-15
3Q2015
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
0
0
0
31
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-15
3Q2015
31-Mar-16
1Q2016
-26 911 759
33
-4 877 810
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
-26 911 759
33
-4 877 810
0
119 489 209
0
14 508 589
-2 389 784
117 099 425
10%
0
24 180 982
158 519 773
268 677 581
25%
134 338 790
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
0
0
0
33
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-16
1Q2016
30-Jun-16
2Q2016
99 860 059
34
17 186 933
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
99 860 059
34
17 186 933
0
238 978 418
0
24 180 982
-4 779 568
234 198 850
20%
0
24 180 982
158 519 773
403 016 371
25%
134 338 790
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
0
0
0
34
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-16
2Q2016
30-Sep-16
3Q2016
221 817 681
35
36 251 538
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
221 817 681
35
36 251 538
0
298 723 023
0
24 180 982
-5 974 460
292 748 562
25%
0
14 508 589
95 111 864
483 619 646
15%
80 603 274
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
0
0
0
35
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-16
3Q2016
31-Dec-16
4Q2016
185 299 530
36
28 755 989
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
185 299 530
36
28 755 989
0
238 978 418
0
14 508 589
-4 779 568
234 198 850
20%
0
9 672 393
63 407 909
537 355 162
10%
53 735 516
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
0
0
0
36
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-16
4Q2016
31-Mar-17
1Q2017
-45 975 976
37
-6 774 990
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
0
0
-28 278 082
37
-4 167 040
0
35 846 763
0
0
-716 935
35 129 827
3%
0
9 672 393
63 407 909
53 735 516
10%
53 735 516
31-Mar-17
1Q2017
601 957 132
-144 469 712
-17 697 894
37
-2 607 950
510 487 404
0
119 489 209
9 672 393
-2 389 784
117 099 425
10%
0
0
0
26 867 758
0
31-Mar-17
1Q2017
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
0
0
0
37
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-17
1Q2017
30-Jun-17
2Q2017
47 476 170
38
6 643 197
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
0
0
-3 469 873
38
-485 529
0
83 642 446
0
9 672 393
-1 672 849
81 969 597
7%
0
14 508 589
95 111 864
134 338 790
15%
80 603 274
30-Jun-17
2Q2017
31 681 954
-7 603 669
50 946 043
38
7 128 726
26 867 758
0
59 744 605
0
-1 194 892
58 549 712
5%
0
0
0
0
0
30-Jun-17
2Q2017
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
0
0
0
38
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-17
2Q2017
30-Sep-17
3Q2017
-26 911 759
39
-3 575 751
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
-26 911 759
39
-3 575 751
0
119 489 209
0
14 508 589
-2 389 784
117 099 425
10%
0
24 180 982
158 519 773
268 677 581
25%
134 338 790
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
0
0
0
39
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-17
3Q2017
31-Dec-17
4Q2017
99 860 059
40
12 599 134
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
99 860 059
40
12 599 134
0
238 978 418
0
24 180 982
-4 779 568
234 198 850
20%
0
24 180 982
158 519 773
403 016 371
25%
134 338 790
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
0
0
0
40
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-17
4Q2017
31-Mar-18
1Q2018
221 817 681
41
26 574 724
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
221 817 681
41
26 574 724
0
298 723 023
0
24 180 982
-5 974 460
292 748 562
25%
0
14 508 589
95 111 864
483 619 646
15%
80 603 274
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
0
0
0
41
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-18
1Q2018
30-Jun-18
2Q2018
185 299 530
42
21 080 002
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
185 299 530
42
21 080 002
0
238 978 418
0
14 508 589
-4 779 568
234 198 850
20%
0
9 672 393
63 407 909
537 355 162
10%
53 735 516
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
0
0
0
42
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-18
2Q2018
30-Sep-18
3Q2018
-45 975 976
43
-4 966 506
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
0
0
-28 278 082
43
-3 054 710
0
35 846 763
0
0
-716 935
35 129 827
3%
0
9 672 393
63 407 909
53 735 516
10%
53 735 516
30-Sep-18
3Q2018
601 957 132
-144 469 712
-17 697 894
43
-1 911 796
510 487 404
0
119 489 209
9 672 393
-2 389 784
117 099 425
10%
0
0
0
26 867 758
0
30-Sep-18
3Q2018
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
0
0
0
43
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-18
3Q2018
31-Dec-18
4Q2018
47 476 170
44
4 869 893
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
0
0
-3 469 873
44
-355 924
0
83 642 446
0
9 672 393
-1 672 849
81 969 597
7%
0
14 508 589
95 111 864
134 338 790
15%
80 603 274
31-Dec-18
4Q2018
31 681 954
-7 603 669
50 946 043
44
5 225 817
26 867 758
0
59 744 605
0
-1 194 892
58 549 712
5%
0
0
0
0
0
31-Dec-18
4Q2018
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
0
0
0
44
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-18
4Q2018
31-Mar-19
1Q2019
-26 911 759
45
-2 621 257
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
-26 911 759
45
-2 621 257
0
119 489 209
0
14 508 589
-2 389 784
117 099 425
10%
0
24 180 982
158 519 773
268 677 581
25%
134 338 790
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
0
0
0
45
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-19
1Q2019
30-Jun-19
2Q2019
99 860 059
46
9 235 981
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
99 860 059
46
9 235 981
0
238 978 418
0
24 180 982
-4 779 568
234 198 850
20%
0
24 180 982
158 519 773
403 016 371
25%
134 338 790
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
0
0
0
46
0
0
0
0
0
0
0
0
0
0
0
0
30-Jun-19
2Q2019
30-Sep-19
3Q2019
221 817 681
47
19 480 993
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
221 817 681
47
19 480 993
0
298 723 023
0
24 180 982
-5 974 460
292 748 562
25%
0
14 508 589
95 111 864
483 619 646
15%
80 603 274
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
0
0
0
47
0
0
0
0
0
0
0
0
0
0
0
0
30-Sep-19
3Q2019
31-Dec-19
4Q2019
185 299 530
48
15 453 006
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
185 299 530
48
15 453 006
0
238 978 418
0
14 508 589
-4 779 568
234 198 850
20%
0
9 672 393
63 407 909
537 355 162
10%
53 735 516
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
0
0
0
48
0
0
0
0
0
0
0
0
0
0
0
0
31-Dec-19
4Q2019
31-Mar-20
1Q2020
-45 975 976
49
-3 640 771
0
0
-28 278 082
49
-2 239 300
0
35 846 763
0
0
-716 935
35 129 827
3%
0
9 672 393
63 407 909
53 735 516
10%
53 735 516
31-Mar-20
1Q2020
601 957 132
-144 469 712
-17 697 894
49
-1 401 471
510 487 404
0
119 489 209
9 672 393
-2 389 784
117 099 425
10%
0
0
0
26 867 758
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
0
0
0
49
0
0
0
0
0
0
0
0
0
0
0
0
31-Mar-20
1Q2020
Security Deposit
Cumulative
0
0
1
-783 854 712
-783 854 712
-783 854 712
0
-783 854 712
-783 854 712
-783 854 712
0
0
783 854 712
0
0
783 854 712
783 854 712
-783 854 712
0
-1 394 484
-1 394 484
-1 394 484
-1 394 484
-1 394 484
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0,943859527
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
1Q2008
31-Mar-2008
Valuation Advisory
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0,890870806
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
2Q2008
30-Jun-2008
Note that it is necessary to leave at least four periods after project final disposal date in order to make correct calculations of disposal value.
0
-0
26,00%
NPV
Discount Rate
Period
NPV Factor
Discounted Equity Cashflow
Cumulative
5,95%
26,00%
0,25%
0,99%
0
Quarterly IRR
Annualy IRR
Equity Cashflow
Equity Cashflow (excl. Residential)
Equity Cashflow for Residential
IRR Quaterly
IRR Annually
Project Cashflow
Cumulative Project Cashflow
Contributions to Cash Reserve
Cash Reserve
Total CF from Financing Activity
Equity Financing
Equity Cumulative Financing
Advance Financing by Tenants
Cashflow from Financing Activity
Total CF from Investing Activity
VAT Paid on Maintanance Costs & Broker's Fees
VAT on Investment Activity
Total VAT Received (Paid)
Balance of VAT
Total VAT Received (Paid) Disregarding Inflation
Balance of VAT Disregarding Inflation
Total Construction, Permit and Design Costs
VAT Received from Tenants
0
0
-774 713 098
-7 747 131
-782 460 229
0
0
Land Acquisition
Agent's Fees on Acquisition
Total Acquisition/Disposal
Tax on Sale Proceeds
Cashflow from Investing Activity
Total CF from Operating Activity (excl. VAT)
0
0,50%
0
782 460 229
0
782 460 229
0
0
0
Net Income
Opening Book Value
Depreciation Rate
Depreciation
Addition in Book Value
Reduction in Book Value
Closing Book Value
Property Tax
Accounting of Security Deposit
Profit Tax
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
90
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 731 838
7 731 838
0
4Q2007
31-Dec-2007
Total Net Rent
Total Net Operating Expenses
Total Maintenance Costs
Broker's Fees on Leasing
Retail 1
Retail 2
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
Rent
Full Rental Value for Retail 1 (auxiliary)
Full Rental Value for Retail 2 (auxiliary)
Total Rent (auxiliary)
Operating Expenses
Review Date
31-Dec-11
31-Dec-11
3Q2007
30-Sep-2007
EBITDA
Phase 8
Phase 7
Phase 6
Phase 5
Phase 4
Phase 3
Phase 2
Phase 1
Cashflow from Operating Activity
Cashflow of the Project
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0,840856898
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
3Q2008
30-Sep-2008
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
0,793650794
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
4Q2008
31-Dec-2008
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5
0,749094863
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
1Q2009
31-Mar-2009
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0,707040323
0
-783 854 712
0
0
0
0
-783 854 712
0
0
0
0
0
0
783 854 712
0
0
0
0
-1 394 484
0
-1 394 484
0
0
0
0
0
0
0
0
782 460 229
0,50%
0
0
0
782 460 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
2Q2009
30-Jun-2009
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8
0,629881582
-3 388 746
-806 167 650
-2 790 700
-2 589 273
-5 379 973
-2 790 700
-793 901 232
0
0
2 790 700
0
0
2 790 700
793 901 232
-2 790 700
0
-425 700
-425 700
-2 927 004
-425 700
-2 927 004
-2 365 000
0
0
0
0
0
0
0
788 609 229
0,50%
0
2 365 000
0
790 974 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
4Q2009
31-Dec-2009
- 107 -
7
0,667346744
-18 924 192
-802 778 904
-7 255 820
-21 101 540
-28 357 360
-7 255 820
-791 110 532
0
0
7 255 820
0
0
7 255 820
791 110 532
-7 255 820
0
-1 106 820
-1 106 820
-2 501 304
-1 106 820
-2 501 304
-6 149 000
0
0
0
0
0
0
0
782 460 229
0,50%
0
6 149 000
0
788 609 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
3Q2009
30-Sep-2009
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
0,594519732
-14 517 039
-820 684 688
-2 790 700
-21 627 394
-24 418 094
-2 790 700
-796 691 932
0
0
2 790 700
0
0
2 790 700
796 691 932
-2 790 700
0
-425 700
-425 700
-3 352 704
-425 700
-3 352 704
-2 365 000
0
0
0
0
0
0
0
790 974 229
0,50%
0
2 365 000
0
793 339 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
1Q2010
31-Mar-2010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10
0,561143113
42 339 521
-778 345 167
-2 790 700
78 242 969
75 452 269
-2 790 700
-799 482 632
0
0
2 790 700
0
0
2 790 700
799 482 632
-2 790 700
0
-425 700
-425 700
-3 778 404
-425 700
-3 778 404
-2 365 000
0
0
0
0
0
0
0
793 339 229
0,50%
0
2 365 000
0
795 704 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
2Q2010
30-Jun-2010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
0,529640273
90 573 390
-687 771 778
-2 790 700
173 799 957
171 009 257
-2 790 700
-802 273 332
0
0
2 790 700
0
0
2 790 700
802 273 332
-2 790 700
0
-425 700
-425 700
-4 204 104
-425 700
-4 204 104
-2 365 000
0
0
0
0
0
0
0
795 704 229
0,50%
0
2 365 000
0
798 069 229
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
3Q2010
30-Sep-2010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12
0,499906018
71 328 154
-616 443 623
-2 503 903
145 187 030
142 683 128
-2 883 666
-805 156 998
0
0
2 883 666
379 763
379 763
2 503 903
804 777 235
-2 746 951
-24 609
-425 700
-381 951
-4 586 055
-381 951
-4 586 055
-2 365 000
68 357
0
0
0
0
-136 715
-136 715
798 069 229
0,50%
0
2 365 000
0
800 434 229
0
0
0
-136 715
0
0
0
-136 715
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 273 066
8 273 066
0
0
0
7 731 838
7 731 838
0
4Q2010
31-Dec-2010
13
0,471841057
-17 242 298
-633 685 921
-2 803 680
-33 738 917
-36 542 597
-2 803 680
-807 960 678
0
0
2 803 680
0
379 763
2 803 680
807 580 915
-2 803 680
0
-427 680
-427 680
-5 013 735
-427 680
-5 013 735
-2 376 000
0
0
0
0
0
0
0
800 434 229
0,50%
0
2 376 000
0
802 810 229
0
0
0
0
0
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
0
0
0
379 763
0
379 763
0
1Q2011
31-Mar-2011
14
0,445351677
17 097 346
-616 588 575
-355 333
38 745 996
38 390 663
-355 333
-808 316 012
-4 747
-4 747
360 080
0
379 763
355 333
807 936 248
-580 643
0
-99 000
-30 643
-5 044 377
-30 643
-5 044 377
-550 000
68 357
0
0
0
0
225 309
130 709
802 810 229
0,50%
94 600
550 000
0
803 265 629
-113 177
0
-41 277
379 763
379 763
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
379 763
0
379 763
379 763
0
379 763
0
2Q2011
30-Jun-2011
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
15
0,420349423
-9 456 856
-626 045 431
-357 237
-22 140 370
-22 497 607
-357 237
-808 673 248
-4 747
-9 494
361 984
0
379 763
357 237
808 293 485
-580 643
0
-99 000
-30 643
-5 075 020
-30 643
-5 075 020
-550 000
68 357
0
0
0
0
223 406
128 806
803 265 629
0,50%
94 600
550 000
0
803 721 029
-115 682
0
-40 676
379 763
379 763
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
379 763
0
379 763
379 763
0
379 763
0
3Q2011
30-Sep-2011
16
0,396750808
32 452 620
-593 592 811
-359 140
82 155 118
81 795 977
-359 140
-809 032 389
-4 747
-14 241
363 887
0
379 763
359 140
808 652 625
-580 643
0
-99 000
-30 643
-5 105 663
-30 643
-5 105 663
-550 000
68 357
0
0
0
0
221 502
126 902
803 721 029
0,50%
94 600
550 000
0
804 176 429
-118 187
0
-40 074
379 763
379 763
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
379 763
0
379 763
379 763
0
379 763
0
4Q2011
31-Dec-2011
17
0,37447703
79 686 577
-513 906 234
22 174 533
190 619 765
212 794 298
22 174 533
-786 857 856
-56
-14 297
-22 174 477
0
379 763
-22 174 533
786 478 092
22 292 552
0
3 432 013
3 432 817
-1 672 846
3 432 817
-1 672 846
-550 000
804
0
0
19 616 740
-207 005
-118 019
-212 619
804 176 429
0,50%
94 600
550 000
18 541 600
786 090 229
-69 702
379 763
-52 782
4 465
4 465
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
4 465
0
4 465
406 347
0
406 347
0
1Q2012
31-Mar-2012
18
0,353453712
56 463 543
-457 442 691
-320 646
160 068 701
159 748 055
-755 437
-787 613 293
0
-14 297
755 437
434 791
814 554
320 646
786 798 738
-598 912
-28 174
-99 000
-48 912
-1 721 758
-48 912
-1 721 758
-550 000
78 262
0
0
0
0
-156 525
-156 525
786 090 229
0,50%
0
550 000
0
786 640 229
0
0
0
-156 525
0
0
0
-156 525
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
434 791
0
434 791
0
0
0
0
406 347
0
406 347
0
2Q2012
30-Jun-2012
19
0,333610653
-13 614 478
-471 057 169
-1 938 115
-38 871 366
-40 809 481
-1 938 115
-789 551 408
-118
-14 415
1 938 233
0
814 554
1 938 115
788 736 853
-1 945 299
0
-297 000
-295 299
-2 017 056
-295 299
-2 017 056
-1 650 000
1 701
0
0
0
0
7 184
7 184
786 640 229
0,50%
0
1 650 000
0
788 290 229
0
0
-2 268
9 452
9 452
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
9 452
434 791
0
434 791
0
0
0
0
406 347
0
406 347
0
3Q2012
30-Sep-2012
20
0,314881593
12 769 165
-458 288 005
-260 489
40 812 763
40 552 274
-260 489
-789 811 897
-5 435
-19 850
265 924
0
814 554
260 489
788 997 343
-570 738
0
-99 000
-20 738
-2 037 794
-20 738
-2 037 794
-550 000
78 262
0
0
0
0
310 248
288 248
788 290 229
0,50%
22 000
550 000
0
788 818 229
-33 517
0
-91 026
434 791
434 791
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
434 791
434 791
0
434 791
0
0
0
0
406 347
0
406 347
0
4Q2012
31-Dec-2012
21
0,297203992
-7 518 996
-465 807 000
-262 696
-25 036 412
-25 299 108
-262 696
-790 074 593
-5 435
-25 285
268 131
0
814 554
262 696
789 260 039
-570 738
0
-99 000
-20 738
-2 058 532
-20 738
-2 058 532
-550 000
78 262
0
0
0
0
308 041
286 041
788 818 229
0,50%
22 000
550 000
0
789 346 229
-36 421
0
-90 329
434 791
434 791
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
434 791
434 791
0
434 791
0
0
0
0
406 347
0
406 347
0
1Q2013
31-Mar-2013
22
0,280518819
25 304 695
-440 502 305
-369 253
90 576 017
90 206 764
-369 253
-790 443 847
-5 435
-30 720
374 688
0
814 554
369 253
789 629 292
-570 738
0
-99 000
-20 738
-2 079 269
-20 738
-2 079 269
-550 000
78 262
0
0
0
0
201 484
179 484
789 346 229
0,50%
22 000
550 000
0
789 874 229
-39 325
434 791
-193 982
434 791
434 791
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
434 791
434 791
0
434 791
0
0
0
0
406 347
0
406 347
0
2Q2013
30-Jun-2013
23
0,26477036
58 625 486
-381 876 819
20 224 951
201 195 175
221 420 126
20 224 951
-770 218 896
0
-30 720
-20 224 951
0
814 554
-20 224 951
769 404 342
20 255 322
0
4 088 038
2 079 269
0
2 079 269
0
-550 000
0
0
0
23 261 320
-4 535 268
-30 371
-52 371
789 874 229
0,50%
22 000
550 000
4 312 000
786 090 229
-30 371
0
0
0
0
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
3Q2013
30-Sep-2013
24
0,249906027
41 927 852
-339 948 967
-297 661
168 072 136
167 774 475
-762 887
-770 981 783
0
-30 720
762 887
465 226
1 279 781
297 661
769 702 003
-595 406
-30 147
-99 000
-45 406
-45 406
-45 406
-45 406
-550 000
83 741
0
0
0
0
-167 482
-167 482
786 090 229
0,50%
0
550 000
0
786 640 229
0
0
0
-167 482
0
0
0
-167 482
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
4Q2013
31-Dec-2013
25
0,235876184
-14 647 089
-354 596 055
-23 039 500
-39 057 014
-62 096 514
-23 039 500
-794 021 283
0
-30 720
23 039 500
0
1 279 781
23 039 500
792 741 503
-23 039 500
0
-3 514 500
-3 514 500
-3 559 906
-3 514 500
-3 559 906
-19 525 000
0
0
0
0
0
0
0
786 640 229
0,50%
0
19 525 000
0
806 165 229
0
0
0
0
0
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
1Q2014
31-Mar-2014
26
0,222633983
8 108 300
-346 487 755
-8 433 466
44 853 334
36 419 867
-8 433 466
-802 454 750
-5 815
-36 535
8 439 282
0
1 279 781
8 433 466
801 174 969
-8 677 759
0
-1 336 500
-1 252 759
-4 812 665
-1 252 759
-4 812 665
-7 425 000
83 741
0
0
0
0
244 293
222 293
806 165 229
0,50%
22 000
7 425 000
0
813 568 229
-150 736
0
-70 198
465 226
465 226
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
465 226
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
2Q2014
30-Jun-2014
27
0,210135206
-7 164 488
-353 652 243
-8 464 411
-25 630 246
-34 094 657
-8 464 411
-810 919 161
-5 815
-42 350
8 470 226
0
1 279 781
8 464 411
809 639 380
-8 677 759
0
-1 336 500
-1 252 759
-6 065 424
-1 252 759
-6 065 424
-7 425 000
83 741
0
0
0
0
213 348
191 348
813 568 229
0,50%
22 000
7 425 000
0
820 971 229
-191 452
0
-60 426
465 226
465 226
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
465 226
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
3Q2014
30-Sep-2014
0
336 500
252 759
318 184
252 759
318 184
28
0,198338116
17 155 812
-336 496 431
-8 607 010
95 104 818
86 497 809
-8 607 010
-819 526 170
-5 815
-48 166
8 612 825
0
1 279 781
8 607 010
818 246 390
-8 677 759
-1
-1
-7
-1
-7
-7 425 000
83 741
0
0
0
0
70 749
48 749
820 971 229
0,50%
22 000
7 425 000
0
828 374 229
-232 169
465 226
-162 308
465 226
465 226
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
465 226
465 226
0
465 226
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
4Q2014
31-Dec-2014
-2 975 211
29
0,187203321
44 515 142
-291 981 289
17 124 138
220 666 205
237 790 343
17 124 138
-802 402 033
0
-48 166
-17 124 138
0
1 279 781
-17 124 138
801 122 252
17 385 165
0
3 459 132
3 459 132
-3 859 051
3 459 132
-3 859 051
-7 425 000
0
30
0,176693638
32 295 950
-259 685 339
-2 520 168
185 299 530
182 779 362
-10 784 644
-813 186 676
0
-48 166
10 784 644
8 264 476
9 544 256
2 520 168
803 642 420
-7 809 432
-535 538
-1 336 500
-384 432
-4 243 484
-384 432
-4 243 484
-7 425 000
1 487 606
0
0
0
0
-2 975 211
0
0
26 642 403
-5 291 370
-261 027
831 465 229
0,50%
0
7 425 000
0
838 890 229
0
0
0
-2 975 211
0
0
0
-2 975 211
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
2Q2015
30-Jun-2015
-283 027
828 374 229
0,50%
22 000
7 425 000
4 312 000
831 465 229
-261 027
0
0
0
0
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
1Q2015
31-Mar-2015
0
009 500
977 161
220 644
977 161
220 644
31
0,166773973
-11 859 978
-271 545 317
-26 115 617
-44 998 465
-71 114 083
-26 115 617
-839 302 293
-2 246
-50 412
26 117 863
0
9 544 256
26 115 617
829 758 037
-26 252 161
-4
-3
-8
-3
-8
-22 275 000
32 339
0
0
0
0
136 544
136 544
838 890 229
0,50%
0
22 275 000
0
861 165 229
0
0
-43 119
179 663
179 663
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
179 663
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
3Q2015
30-Sep-2015
0
500
106
539
106
539
32
0,157411203
7 237 827
-264 307 490
-1 265 497
47 245 875
45 980 378
-1 265 497
-840 567 791
-103 306
-153 717
1 368 803
0
9 544 256
1 265 497
831 023 535
-7 273 894
-1 336
151
-8 069
151
-8 069
-7 425 000
1 487 606
0
0
0
0
6 008 397
5 711 397
861 165 229
0,50%
297 000
7 425 000
0
868 293 229
-452 480
0
-1 803 599
8 264 476
8 264 476
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
8 264 476
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
4Q2015
31-Dec-2015
33
0,148574064
-4 190 836
-268 498 326
-1 295 292
-26 911 759
-28 207 051
-1 295 292
-841 863 083
-103 306
-257 023
1 398 598
0
9 544 256
1 295 292
832 318 827
-7 273 894
0
-1 336 500
151 106
-7 918 433
151 106
-7 918 433
-7 425 000
1 487 606
0
0
0
0
5 978 602
5 681 602
868 293 229
0,50%
297 000
7 425 000
0
875 421 229
-491 684
0
-1 794 190
8 264 476
8 264 476
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
8 264 476
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
1Q2016
31-Mar-2016
34
0,140233046
13 539 711
-254 958 616
-3 308 562
99 860 059
96 551 498
-3 308 562
-845 171 645
-103 306
-360 329
3 411 868
0
9 544 256
3 308 562
835 627 389
-7 273 894
0
-1 336 500
151 106
-7 767 328
151 106
-7 767 328
-7 425 000
1 487 606
0
0
0
0
3 965 333
3 668 333
875 421 229
0,50%
297 000
7 425 000
0
882 549 229
-530 888
8 264 476
-3 768 255
8 264 476
8 264 476
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
8 264 476
532 638
7 731 838
8 264 476
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
2Q2016
30-Jun-2016
35
0,132360296
79 841 353
-175 117 262
381 394 579
221 817 681
603 212 259
381 394 579
-463 777 067
0
-360 329
-381 394 579
0
9 544 256
-381 394 579
454 232 810
381 804 587
0
85 660 744
7 767 328
0
7 767 328
0
-7 425 000
0
0
0
483 318 023
-101 855 763
-410 009
-707 009
882 549 229
0,50%
297 000
7 425 000
58 212 000
831 465 229
-410 009
0
0
0
0
0
0
0
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
569 922
8 273 066
8 842 989
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
3Q2016
30-Sep-2016
36
0,124929526
22 889 120
-152 228 142
-2 083 275
185 299 530
183 216 255
-10 926 264
-474 703 330
0
-360 329
10 926 264
8 842 989
18 387 245
2 083 275
456 316 085
-7 742 788
-573 026
-1 336 500
-317 788
-317 788
-317 788
-317 788
-7 425 000
1 591 738
0
0
0
0
-3 183 476
-3 183 476
831 465 229
0,50%
0
7 425 000
0
838 890 229
0
0
0
-3 183 476
0
0
0
-3 183 476
0
799 346
0
799 346
0
0
698 179
0
698 179
0
0
652 504
0
652 504
0
0
569 922
8 273 066
8 842 989
0
0
569 922
8 273 066
8 842 989
0
0
497 792
0
497 792
0
0
465 226
0
465 226
0
0
0
0
406 347
0
406 347
0
4Q2016
31-Dec-2016
37
0,117915924
-6 033 519
-158 261 662
-5 192 000
-45 975 976
-51 167 976
-5 192 000
-479 895 330
0
-360 329
5 192 000
0
18 387 245
5 192 000
461 508 085
-5 192 000
0
-792 000
-792 000
-1 109 788
-792 000
-1 109 788
-4 400 000
0
0
0
0
0
0
0
838 890 229
0,50%
0
4 400 000
0
843 290 229
0
0
0
0
0
0
0
0
0
599 509
0
599 509
0
0
523 635
0
523 635
0
0
489 378
0
489 378
0
0
427 442
8 273 066
8 700 508
0
0
427 442
8 273 066
8 700 508
0
0
373 344
0
373 344
0
0
348 920
0
348 920
0
0
0
0
304 760
0
304 760
0
1Q2017
31-Mar-2017
38
0,111296068
6 061 721
-152 199 941
6 988 656
47 476 170
54 464 826
6 988 656
-472 906 674
-108 756
-469 086
-6 879 899
0
18 387 245
-6 988 656
454 519 429
559 788
0
-99 000
1 109 788
0
1 109 788
0
-550 000
1 566 091
0
0
0
0
6 428 868
6 131 868
843 290 229
0,50%
297 000
550 000
0
843 543 229
-335 261
0
-1 936 379
8 700 508
8 700 508
0
0
0
0
599 509
0
599 509
0
0
523 635
0
523 635
0
0
489 378
0
489 378
0
8 700 508
427 442
8 273 066
8 700 508
0
0
427 442
8 273 066
8 700 508
0
0
373 344
0
373 344
0
0
348 920
0
348 920
0
0
0
0
304 760
0
304 760
0
2Q2017
30-Jun-2017
39
0,105047854
-2 209 571
-154 409 512
5 877 811
-26 911 759
-21 033 948
5 877 811
-467 028 864
-108 756
-577 842
-5 769 054
0
18 387 245
-5 877 811
448 641 619
-550 000
0
-99 000
0
0
0
0
-550 000
1 566 091
0
0
0
0
6 427 811
6 130 811
843 543 229
0,50%
297 000
550 000
0
843 796 229
-336 652
0
-1 936 045
8 700 508
8 700 508
0
0
0
0
599 509
0
599 509
0
0
523 635
0
523 635
0
0
489 378
0
489 378
0
8 700 508
427 442
8 273 066
8 700 508
0
0
427 442
8 273 066
8 700 508
0
0
373 344
0
373 344
0
0
348 920
0
348 920
0
0
0
0
304 760
0
304 760
0
3Q2017
30-Sep-2017
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
APPENDIX III INFORMATION SUPPLIED
•
St. Petersburg government, the City Planning and Architecture Committee – Decision No 1-44628/2 (from 19.03.2007)
•
Savant Due Diligence Report. Canada-Israel Residential Building Project
•
Yashar Architects – Planetograd Pulkovski Meridian presentation
•
The request for limitations of the construction received from Pulkovskaya observatory
•
“Certificate of State Registration of Ownership” #78-АГ 049881 as of 6th November 2007
•
“Certificate of State Registration of Ownership” #78-АГ 049827 as of 6th November 2007
•
“Certificate of State Registration of Ownership” #78-АГ 049882 as of 6th November 2007
•
Ownership Registration Certificate #78-АГ 049883 as of 6 November 2007.
•
Ownership Registration Certificate #78-АГ 049884 as of 6 November 2007.
•
Ownership Registration Certificate #78-АГ 049885 as of 6 November 2007.
Valuation Advisory
- 108 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
APPENDIX IV VALUATION LICENSES
Valuation Advisory
- 109 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Valuation Advisory
- 110 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Valuation Advisory
- 111 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Valuation Advisory
- 112 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Valuation Advisory
- 113 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
APPENDIX V PRINCIPAL TERMS AND CONDITIONS OF APPOINTMENT AS VALUERS
Valuation Advisory
- 114 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
1. PERFORMANCE OF THE SERVICES
1.1 We undertake to use all reasonable skill and care in providing the services and advice
described in the instruction given by you (the "Services"). We will inform you if it becomes
apparent that the Services need to be varied or external third party advice is required. Any variation
is to be confirmed in writing.
1.2 We may need to appoint third party providers to perform all or part of the Services and we shall
agree this with you in advance in written form. Any third parties involved into the Agreement shall
not influence the fee under this Agreement, if otherwise is not expressly provided in the
Agreement.
2. BASIS OF FEES
2.1
The basis of our fees for our Services are set out in the Proposal and Agreement.
2.2 When applicable, VAT shall be payable by you in addition to any fees or disbursements
invoiced at the applicable rate.
2.3 You shall pay our fees in accordance with the payment schedule represented in the Agreement.
Payment is due within 10 days of the invoice date.
2.4 Where valuations are undertaken for a lender for loan security purposes and it is agreed that a
borrower will pay our fee, you shall remain primarily liable to pay our fee should such borrower fail
to meet its liabilities to us in full. Payment of our fees is not conditional upon the loan being drawn
down or any of the conditions of the loan being met.
2.5 If you do not dispute with us an invoice or any part thereof within 10 days of the date of such
invoice, you shall be deemed to have accepted the invoice in its entirety.
2.6 If we are required by you to undertake additional work in relation to an instruction, you shall
pay additional fees based upon additional agreement to the Agreement.
2.7 Where there is a change to the stated purpose for which our valuation is being commissioned
and in our sole opinion we deem this to result in an increase in our liability (for example a valuation
for annual accounts being used for loan security purposes), we reserve the right to charge an
additional fee.
Valuation Advisory
- 115 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
2.8 In the event that the “Client” withdraws the services proposed by the “Consultant” prior to
completion of a valuation, the “Client” shall be liable to pay the “Consultant” for actual expenses
made under the execution of the “Agreement”. If we have sent you a draft valuation report, such
fees shall be subject to a minimum of 80% of the fee originally agreed between us.
Associated/Related Entities of the Client
2.9 Where we are instructed to provide Services to one of your subsidiaries or associate/related
entities or should you subsequently request that another entity be substituted for you at a later stage
and we are unable to seek or obtain payment of any outstanding monies for whatever reason, you
shall remain primarily liable to pay those outstanding monies if the subsidiary, associate/related or
other entity does not meet its liabilities in relation to the Services.
3. INFORMATION RECEIVED FROM THE CLIENT
3.1
We will take all reasonable steps to ensure property information is accurate where we are
responsible for its preparation. Where you provide us with any information on a property that is
necessary or convenient to enable us to provide the Services properly, you are aware that we will
rely on the accuracy, completeness and consistency of any information supplied by you or on your
behalf and, unless specifically instructed otherwise in writing, we will not carry out any investigation
to verify such information. We accept no liability for any inaccuracy or omission contained in
information disclosed by you or on your behalf, whether prepared directly by you or by a third
party, and whether or not supplied directly to us by that third party and you shall indemnify us
should any such liability arise. If our valuation is required for the purpose of purchase or loan
security, you accept that full investigation of the legal title and any leases is the responsibility of
your lawyers.
3.2 Advice Assumptions
Unless otherwise advised by you in writing, we will provide the Services in relation to any property
on the assumption that:
•
information provided as to the extent of and ownership of the land plots is complete and
correct and that there are no encumbrances or unduly onerous or unusual easements,
Valuation Advisory
- 116 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
restrictions, outgoings or conditions attaching to the land plots save as specifically notified to
us;
•
there are no environmental matters (including but not limited to actual or potential land, air or
water contamination, or by asbestos or any other harmful or hazardous substance) that would
affect the land plots, any development or any existing buildings on the land plots in respect of
which the Services are provided or any adjoining land plots, and that we shall not be
responsible for any investigations into the existence of the same and that you are responsible
for making such investigations;
•
the land plots and any existing buildings are free from any defect whatsoever;
•
all the building services (such as lifts, electrical, gas, plumbing, heating, drainage and air
conditioning installations and security systems) and land plots services (such as incoming
mains, waste, drains, utility supplies, etc) are in good working order without any defect
whatsoever;
•
any building, the building services and the land plots services comply with all applicable
current regulations (including fire and health and safety regulations);
•
the land plots and any existing building comply with all planning and building regulation, have
the benefit of appropriate planning consent or other statutory authorisation for the current use
and no adverse planning conditions or restrictions apply (which includes, but is not limited to,
threat of or actual compulsory purchase order);
•
appropriate insurance cover is, and will continue to be, available on commercially acceptable
terms for any building incorporating types of construction or materials which may pose an
increased fire or health and safety risk, or where there may be an increased risk of terrorism,
flooding or a rising water table; and
•
items of plant and machinery that usually comprise part of the land plots on an assumed sale,
are included in the land plots but items of plant and machinery that are associated with the
process being carried on in the land plots or tenants trade fixtures and fittings are excluded
from the land plots.
Valuation Advisory
- 117 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
•
all buildings have been constructed having appropriate regard to existing ground conditions or
that these would have no unusual effect on building costs, land plots values or viability of any
development or existing buildings.
3.3 Where comparable evidence information is included in our report, this information is often
based upon our oral enquiries and its accuracy cannot always be assured, or may be subject to
undertakings as to confidentiality. However, such information would only be referred to where we
had reason to believe its general accuracy or where it was in accordance with expectation. In
addition, we have not inspected comparable properties.
4. STRUCTURE
4.1
We will not carry out a structural survey of any property nor will we test services. Further, no
inspection will be made of the woodwork and other parts of the structures which are covered,
unexposed or inaccessible. In the absence of information to the contrary, the valuation will be on
the basis that the property is free from defect. However, the value will reflect the apparent general
state of repair of the property noted during inspection, but we do not give any warranty as to the
condition of the structure, foundations, soil and services. Our report should not be taken or
interpreted as giving any opinion or warranty as to the structural condition or state of repair of the
property, nor should such an opinion be implied.
4.2 Measurements
(i)
Standard practice is that all measurements to be provided by the Client from Property
registration documentation. We will not carry out any physical measurements unless specifically
instructed to us.
5. CONFLICTS OF INTEREST
5.1
We have conflict management procedures designed to prevent us acting for one client in a
matter where there is or could be a conflict with the interest of another client for whom we are
acting. If you are aware or become aware of a possible conflict of this type, please raise it
immediately with us. If a conflict of this nature arises, then we will decide, taking account of legal
constraints, relevant regulatory body rules and your and the other client’s interests and wishes,
Valuation Advisory
- 118 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
whether we can continue to act for both parties (eg through the use of separate teams with
appropriate Chinese Walls), for one only or for neither. Where we do not believe that any potential
or actual conflict of interest can be managed appropriately, we will inform you and consult with you
as soon as reasonably practicable. Should you have any queries on this, you should contact your
client partner.
6. MANAGEMENT OF THE PROPERTY
6.1
We shall not be responsible for the management of the property nor have any other
responsibility (such as maintenance or repair) in relation to the property. We shall not be liable for
any damage that may occur while the property is unoccupied. The property shall be your sole
responsibility. You are aware that while a property is unoccupied, the property is likely to suffer
from adverse weather conditions and frost damage may occur to water and heating systems and
sanitary appliances. You are strongly recommended to take all necessary actions to protect the
property from such risks and to ensure that adequate insurance cover
7. APPRAISAL EXCLUSIONS
Delay
7.1 Where matters beyond the control of ourselves cause delay to the performance of the services
we will notify the client as soon as we become aware of the situation. The client agrees that we will
not be held responsible for such delay.
Basis of Valuation
7.2 Unless otherwise requested the valuation will be prepared in accordance with Russian Valuation
Standards and rules and the Appraisal and Valuation Standards published by the RICS (“The Red
Book”) and will be prepared by Asset Valuers as defined therein. In case of any discrepancies
between these standards Russian Valuation Standards and rules will have precedence.
7.3 The valuation of any property held as an investment or surplus to requirements will be on the
basis of Market Value (as defined in paragraph 21 hereof). Any properties primarily occupied by
the owner of those properties or their subsidiaries will be valued on the basis of Existing Use Value
(as defined in paragraph 21 hereof).
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
7.4 Any property which is classified as “specialised” or which has been subject to specialist
adaptation works may need to be valued on the basis of Depreciated Replacement Cost (as defined
in paragraph 21 hereof). This value will be caveated as being subject to the directors of the owning
company being satisfied that there is adequate potential profitability of the business compared with
the value of the total assets employed.
7.5 When assessing either Existing Use Value or Market Value for balance sheet purposes, we will
not include directly attributable acquisition or disposal costs in our valuation. Where asked to
reflect costs by the client (as required under FRS15), these will be stated separately.
Tenure and Tenancies
7.6 We will not inspect title deeds and we will therefore rely on the information supplied as being
correct and complete. In the absence of information to the contrary, we will assume the absence of
unusually onerous restrictions, covenants or other encumbrances and that the property has a good
and marketable title. Where supplied with legal documentation, we will consider it but we will not
take responsibility for the legal interpretation of it. Unless agreed we will not obtain information
from The Land Registry.
7.7 You should confirm to us in writing if you require us to read leases and if so, provide all the
relevant documentation within a reasonable time for consideration bearing in mind the date for
receipt of our report. You should not rely upon our interpretation of the leases without first
obtaining the advice of your lawyers.
Covenant
7.8 Our valuation will take into account potential purchasers’ likely opinion of the financial strength
of tenants. However, we will not undertake any detailed investigations on the covenant strength of
the tenants. Unless informed to the contrary by you, we will assume that there are no significant
arrears and that the tenants are able to meet their obligations under their leases or agreements.
7.9 We will not make any allowance in our Services for the existence of any mortgage or other
financial encumbrance on or over the property nor take account of any leases between subsidiaries.
7.10 Any appraisal figures provided will be exclusive of VAT.
7.11 In instances where we are instructed to provide an indication of current reinstatement costs for
fire insurance purposes, this is given solely as a guide without warranty. Formal estimates for
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
insurance purposes can only be given by a quantity surveyor or other person with sufficient current
experience of replacement costs.
8. PLANNING REGULATIONS
8.1 Unless specifically instructed in writing to make formal searches with the relevant local planning
authorities, we shall rely in the provision of our Services on the information provided informally by
the relevant planning authority or its officers. We recommend that your lawyers be instructed to
confirm the planning position relating to the property and review our comments on planning in the
light of their findings.
8.2 Where we undertake value appraisals, we may consider the possibility of alternative uses being
permitted. Unless otherwise notified by you in writing, we shall assume that the property and any
existing buildings comply with all planning and building regulation, existing uses have the benefit of
appropriate planning consent or other statutory authorisation, and that no adverse planning
conditions or restrictions apply.
9. PROFESSIONAL LIABILITY
9.1 Subject to the provisions in these Terms of Business, our total aggregate liability (including that
of our partners and employees) to you in contract, tort (including negligence or breach of statutory
duty), misrepresentation, restitution or otherwise, arising in connection with the performance or
contemplated performance of the Services shall be limited to an aggregate sum not exceeding
twenty times the fee paid for each instruction accepted. We shall not be liable to you for any pure
economic loss, loss of profit, loss of business, depletion of goodwill, in each case whether direct,
indirect or consequential, or any claims for consequential compensation whatsoever (howsoever
caused) which arise out of or in connection with the Services.
9.2 For the avoidance of doubt, our partners and employees shall have no liability in respect of
their private assets.
9.3 Nothing in these Terms of Business excludes or limits our liability for: (i) death or personal
injury caused by our negligence; (ii) any matter which it would be illegal for us to exclude or attempt
to exclude our liability; or (iii) fraud or fraudulent misrepresentation.
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
9.4 Where a third party has contributed to the losses, damages, costs, claims or expenses, we shall
not be liable to make any contribution in respect of the liability of such third party.
9.5 Save in respect of third parties directly instructed by us and not on your behalf, we shall not be
liable for the services or products provided by other third parties, nor shall we be required to
inspect or supervise such third parties, irrespective of the third party services or products being
incidental to or necessary for the provision of our Services to you.
9.6 We shall be released from our obligations to the extent that performance thereof is delayed,
hindered or prevented by any circumstances beyond our reasonable control (examples, including
but not limited to, being a strike, act of God or act of terrorism). On becoming aware of any
circumstance which gives rise, or which is likely to give rise, to any failure or delay in the
performance of our obligations, we will notify you by the most expeditious method then available.
9.7 To cover any liability that might be incurred by us, we confirm that we will maintain
professional indemnity insurance, so long as such insurance is available at commercially acceptable
rates and terms, with insurers of good standing and repute of up to $1 million on an each and every
claim basis in Russia.
9.8 Our pricing structure has been established by reference to these limitations on our liability and
our level of professional indemnity insurance in respect of the Services we provide. If you feel that
it is necessary to discuss with us a variation in these levels, then please raise the issue with your
client partner who will be able to let you have proposals for a revised pricing structure to reflect the
agreed level of our liability and/or professional indemnity cover.
9.9 Responsibility for our valuation extends only to the party(ies) to whom it is addressed.
However in the event of us being asked by you to readdress our report to another party or other
parties or permit reliance upon it by another party or other parties, we will give consideration to
doing so, to named parties, subject to the following minimum fees:
First Extended Party
Second & Subsequent
Extended Parties
For the first $1m of
reported value
0.075%
0.025% per party
Thereafter
0.035%
0.015% per party
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
These fees are exclusive of VAT & expenses (including the cost of readdressing the report) and are
subject to a minimum fee of $1000 Should additional work be involved, over and above that
undertaken to provide the initial report, we may make a further charge although we will agree this
with you before commencing the work. The Client’s claim shall considered by the Consultant
during 20 (twenty) working days upon receiving it.
10. QUALITY OF SERVICE
10.1 Whilst we seek to provide high quality Services, if a client has cause for complaint we have
standard complaints procedures, a copy of which is available on request. This is in accordance with
requirements of the Royal Institution of Chartered Surveyors.
11. QUALITY CONTROL
11.1 In circumstances where a valuation, although provided for a client, may also be of use to third
parties, for instance the shareholders in a company (otherwise defined as a “Regulated Purpose
Valuation” by the RICS), the RICS requires us to state our policy on the rotation of the surveyor
who prepares the valuation and the quality control procedures that are in place.
11.2 Irrespective of the purpose of the valuation, we will select the most appropriate surveyor for
the valuation having regard to his/her expertise and the possible perception that independence and
objectivity could be compromised where a valuer has held the responsibility for a particular client
for a number of years. This may result in us rotating the surveyor responsible for repeat valuations
for the same client although we will not do so without prior discussion with the client.
11.3. For valuations of properties with an individual value of $30m or over, the valuer is required to
present and explain his methodology to another member of the Valuation Advisory Team.
11.4 Where we are undertaking a Regulated Purpose Valuation (see 15.1 above) we are required by
the RICS to state all of the following in our report:
11.4.1 The length of time the valuer continuously has been the signatory to valuations provided to
you for the same purpose as the report, together with the length of time we have continuously been
carrying out that valuation instruction for you;
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
11.4.2 The extent and duration of the relationship between you and us;
12. MONEY LAUNDERING REGULATIONS
12.1 Pursuant to requirements of Russian law on money laundering we may be required to verify
certain particulars of our clients and may need to ask you to assist us in complying with such
requirements. Where such information is requested, you will provide such information promptly to
enable us to proceed to provide our Services. We shall not be liable to you or any other parties for
any delay in the performance or any failure to perform the Services which may be caused by our
duty to comply with such requirements.
13. ELECTRONIC COMMUNICATIONS
13.1 We may communicate with each other by electronic mail, sometimes attaching electronic data.
By consenting to this method of communication, we and you accept the inherent risks (including
the security risks of interception of, or unauthorised access to, such communications, the risks of
corruption of such communications and the risks of viruses or other harmful devices). In the event
of a dispute, neither of us will challenge the legal evidential standing of an electronic document and
our system shall be deemed to be the definitive record of electronic communications and
documentation.
14. CONFIDENTIALITY AND INTELLECTUAL PROPERTY
14.1 We owe our clients a duty of confidentiality. You agree, however, that we may, when required
by our insurers or other advisers, provide details to them of any engagement on which we have
acted for you, and that we may also disclose confidential information relating to your affairs if
required to do so for legal, regulatory or insurance purposes only.
14.2 Both parties agree never to disclose sensitive details of transactions or our advice without the
other’s consent. Unless we are expressly bound by a duty of confidentiality which otherwise
overrides this, both parties shall be entitled to mention to third parties (e.g. in the course of
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
presentations, speeches or pitches) and/or publish (e.g. in brochures, marketing or other written
material) that we provide our services to you.
14.3 We shall provide the Services to you only for your sole use and for the stated purpose. We
shall not be liable to any third party in respect of our Services. You shall not mention nor refer to
our advice, in whole or in part, to any third party orally or in annual accounts or other document,
circular or statement without our prior written approval. The giving of an approval shall be at our
sole discretion.
14.4 We will not approve any mention of our Services unless it contains sufficient reference to all
the special assumptions and/or limitations (if any) to which our Services are subject. For the
avoidance of doubt our approval is required whether or not we are referred to by name and
whether or not our advice is combined with others.
14.5 We may make the approval of any mention of our Services, or re-address to third parties our
Services, subject to the payment of an additional fee to cover additional work and professional
liability.
15. THIRD PARTIES RIGHTS AND ASSIGNMENT
15.1 No term of the Proposal or these Terms of Business is intended to confer a benefit on or to be
enforceable by any person who is not a party to the same.
15.2 Subject to clause 20.2 above, neither party shall be entitled to assign this contract or any rights
and obligations arising from it without the prior written consent of the other, such consent not to
be unreasonably.
16. GENERAL
16.1 If any provision of the Terms of Business is found by any court, tribunal or administrative
body of competent jurisdiction to be wholly or partly illegal, invalid, void, voidable, unenforceable
or unreasonable it shall to the extent of such illegality, invalidity, voidness, voidability,
unenforceability or unreasonableness be deemed severable and the remaining provisions of the
Terms of Business and the remainder of such provision shall continue in full force and effect.
Valuation Advisory
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Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
16.2 Failure or delay by us in enforcing or partially enforcing any provision of these Terms of
Business shall not be construed as a waiver of any of our rights under these Terms of Business.
16.3 The Proposal and these Terms of Business shall be governed by and be construed in
accordance with Russian law.
17. BASES OF VALUATION
Our valuation advice will be prepared in accordance with one or more of the following bases of
valuation as defined in the Practice Statements of the Red Book (“PS”) as appropriate:
17.1 Market Value
PS 3.2 defines Market Value as:
“The estimated amount for which land plots should exchange on the date of valuation between a
willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the
parties had each acted knowledgeably, prudently and without compulsion.”
17.1.1 Trading Related Valuations
Where appropriate, such properties will be valued on the basis of Market Value as a fully equipped
operational entity, having regard to trading potential.
Where we are instructed to value an operational property having regard to it’s trading potential
(such as self storage properties, hotels and marinas), we will take account of any trading information
provided to us. The valuations will be based on our opinion as to future trading potential and the
level of turnover and net operating income likely to be achieved.
The valuations will be made on the basis that the properties will be sold as a whole including all
fixtures, fittings, stock and goodwill. The new owner would normally engage the existing staff and
the new management would expect to take over the benefit of existing and future bookings or
occupational agreements which may be an important feature of the continuing operation, together
with all existing statutory consents plus all operational permits and licences.
Unless made clear to the contrary in our report, the valuations will reflect our opinion that all
goodwill for the properties is tied to the land and buildings and does not represent personal
goodwill to the operator.
Valuation Advisory
- 126 -
Valuation Report
of Land Plots of 2,397,107 square meters located
on the intersection of Pulkovskoe and Volkhonskoe highways in St. Petersburg, Russia
for Morgal Investments LLC
for the purpose of attracting financial resources
as at valuation date 31st of December 2007, issue date 24th of March 2008
Our valuations will be based on the information which either the operator has supplied to us or
which we have obtained from our enquiries (including full detailed trading information in relation
to each trading property). We will rely on this being correct and complete and on there being no
undisclosed matters which would affect our valuation.
17.2 Depreciated Replacement Cost
PS 3 Appendix 3.1 states that Depreciated Replacement Cost (DRC) is recognised as an acceptable
method of estimating Market Value where more reliable methods, such as market comparison or an
income (profits test), cannot be applied. The valuer must be satisfied that it is not practicable to
prepare a valuation by any other method before relying solely on depreciated replacement cost.
DRC is based on an estimate of the value of the land, plus the current gross replacement
(reproduction) costs of the improvements, less allowances for physical deterioration and all relevant
forms of obsolescence and optimization.
17.3 Market Rent
PS 3.4 defines Market Rent as:
“The estimated amount for which a property, or space within a property, should lease (let) on the
date of valuation between a willing lessor and a willing lessee on appropriate lease terms in an arms
length transaction after proper marketing wherein the parties had acted knowledgeably, prudently
and without compulsion.”
17.4 Existing Use Value
PS 1.3 defines Existing Use Value as:
“The estimated amount for which a property should exchange on the date of valuation between a
willing buyer and a willing seller in an arms length transaction, after proper marketing wherein the
parties had acted knowledgeably, prudently, and without compulsion, assuming that the buyer is
granted vacant possession of all parts of the property required by the business and disregarding
potential alternative uses and any other characteristics of the property that would cause it’s Market
Value to differ from that needed to replace the remaining service potential at least cost.”
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