PJSC LSR Group: LSR Group sells a 50% stake in its ZILYUG redevelopment project

PJSC LSR Group (LSRG) 
PJSC LSR Group: LSR Group sells a 50% stake in its ZILYUG redevelopment 
project 
 
24-Jun-2019 / 18:00 CET/CEST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
      LSR Group sells a 50% stake in its ZILYUG redevelopment project 
 
        St. Petersburg, Russia - 24 June 2019 - PJSC LSR Group ("LSR" or the 
          "Company") (LSE: LSRG; MOEX: LSRG), one of the leading real estate 
 developers and building materials producers in Russia, today announces that 
      it has agreed to sell a 50% stake in Razvitie LLC to Leader Invest, an 
                    Etalon Group company. 
 
   The deal is part of LSR's strategy to diversify its development assets in 
 the Moscow region. The Group will remain one of the largest participants in 
     the redevelopment project at the former ZIL Likhachev Automotive Plant. 
 
Razvitie LLC is a joint venture between LSR and Leader Invest (an Etalon 
Group company). In 2015, it won an open tender for the right to develop the 
southern part of ZIL in the Danilovsky District of Moscow. At that time, LSR 
already owned the right to exploit and develop the northern area of the 
former car plant site, which is being transformed into ZILART, LSR's 
flagship development consisting of more than 1 million square meters of 
sellable area, and a leading residential complex in the Russian business 
class real estate market. The development's first apartments have already 
been commissioned. 
 
Andrey Molchanov, Chairman of the Board of Directors of PJSC LSR Group, 
commented: "We are pleased with the outcome of this transaction and are 
delighted to sell an interest in so called ZILYUG to a sustainable and 
prominent developer who was initially set out to be our long-time partner in 
the development of this project. With the interests of all parties fully 
aligned, we are confident that the construction timetable will be executed 
while maintaining the same level of high-quality work undertaken to date to 
deliver a very positive impact for all involved in the entire redevelopment 
project. This divestment enables LSR Group to focus its efforts on the 
ZILART residential complex in the northern part of ZIL, while broadening its 
interests elsewhere in Moscow." 
 
The financial terms of the agreement have not been disclosed. LSR Group 
intends to reinvest proceeds raised from the transaction in new projects. 
 
                    For more information please contact: 
 
            Investor Relations Media Relations 
 
                               LSR Group Press Service 
                               E-mail: [e-mail] 
 
                     Igor Tsoy 
 
Director of Investor Relations 
 
        E-mail: [e-mail] 
 
About LSR Group: 
 
PJSC LSR Group is one of Russia's leading residential real estate developers 
and building materials producers. Founded in 1993, the business of LSR Group 
        is concentrated in the three largest regions of Russia - Moscow, St. 
    Petersburg and Yekaterinburg. The main business areas of the Company are 
         real estate development and construction and production of building 
    materials. LSR Group carries out projects in all segments of residential 
                    real estate market: mass market, business and elite. 
 
   In accordance with its audited IFRS consolidated financial statements for 
 2018, LSR Group had revenue of RUB146.4 billion, Adjusted EBITDA of RUB36.4 
billion and Net Profit of RUB16.2 billion. As of 31 December 2018 (according 
     to Knight Frank), the net sellable area of projects in LSR Group's real 
   estate portfolio amounted to 7.8 million m2 with a market value of RUB186 
                    billion. 
 
     Ordinary shares of the Company are traded on the Moscow Exchange (MOEX: 
    LSRG) and GDRs representing its ordinary shares are traded on the London 
                    Stock Exchange (LSE: LSRG). 
 
                    www.lsrgroup.ru [1] 
 
ISIN:           US50218G2066 
Category Code:  MSCM 
TIDM:           LSRG 
LEI Code:       25340067LEEMJ79K8X43 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   11154 
EQS News ID:    829809 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=f69150ed01d3088b34284c75345c9309&application_id=829809&site_id=vwd&application_name=news 
 

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June 24, 2019 12:00 ET (16:00 GMT)