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: press@lsrgroup.ru
Igor Tsoy
Director of Investor Relations
E-mail: IR@lsrgroup.ru
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
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(END) Dow Jones Newswires
June 24, 2019 12:00 ET (16:00 GMT)
