Q1 2017 Investor Presentation

Page 1

Q1 2017 IR Presentation FINANCIAL & BUSINESS RESULTS May 2017


Disclaimer This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of AFI Development Plc (the "Company") or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. This communication is only being distributed to and is only directed at (1) qualified institutional buyers (within the meaning of Rule 144A of the United States Securities Act of 1933, as amended (the "Securities Act") or (2) accredited investors (as defined in Rule 501(a) of Regulation D adopted pursuant to the Securities Act). Any person who is not a "qualified institutional buyer" or "accredited investor" should not act or rely on this document or any of its contents. This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Neither the Company, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document. The information contained in this document is provided as at the date of this document and is subject to change without notice.

2


Company Overview SECTION 1


AFI Development at a glance Market Cap, as of 26 May 2017 Mkt price GDR, as of 26 May 2017 Mkt price B share, as of 26 May 2017 NAV (Equity), as of 31 March 2017 NAV per share, as of 31 March 2017 Portfolio Value*

US$215 mln US$0.19 US$0.22 US$788 mln US$0.75 US$ 1.49 bn

BUSINESS

PORTFOLIO VALUE*

HISTORY *Gross Asset Value of Portfolio based on JLL Valuation as of 31 March 2017 and BSV of Land Bank projects, Trading Properties and Hotels

BRAND

•Full cycle real estate developer •Focus on unique large scale commercial and residential projects •Primary market: Moscow, Russia

•16 years on the market •Admitted to LSE in 2007 •Premium listing from 2010 •Free float – 35.12%

•Strong local and international brand

FINANCIAL STABILITY

• Liquidity position: US$29.6 million as at 31 March 2017 • Secured financing for on-going projects • 44% Debt to Total Assets ratio**

TRACK RECORD

•14 completed projects with total c. 0.6 mln sqm of space •Market reputation for high quality and professional property management

PORTFOLIO

• Substantial income generating portfolio. Major project AFIMALL City • 8 Development Projects & land bank

** Bank loans only

4


Key Projects in Moscow Yielding Projects (retail, offices and hotels) Value** Plaza II, Plaza Ib

Riverside Station Berezhkovskaya

AFIMALL

GLA (excl. hotels), sqm: PLAZA SPA Kisl*

PLAZA SPA Zhel*

US$989 mn

(JLL and book value, as of 31 March 2017):

193.1K sqm

Aquamarine III

* Outside of Moscow * * Hotels presented at cost value Aquamarine Htl

Paveletskaya I

H2O

Projects Under Development Value** Odinburg**

Paveletskaya II

Plaza IIa

KOSSINSKAYA Kossinskaya

US$499 mn

(JLL and book value, as of 31 March 2017):

Plaza Ic

B. Pochtovaya

Botanic Garden

Plaza IV

GLA, sqm:

231.6K

GSA, sqm:

730.9K

** Odinburg and Botanic Garden presented at cost value

Land Bank Yielding Projects Value (BSV):

US$4 mn

Projects under Development Completed Assets 5


Project Update. Yielding Projects SECTION 2


AFIMALL City Update

(as of March 2017) Total GBA, sqm

275.0K

 The occupancy level was 83% at the end of March 2017, vs. 84% at the end of December 2016

Total GLA(shops, offices, storage), sqm

107.2K

 AFIMALL City’s performance continues to improve, reflected in increased revenue (US$19.5 million for the quarter) and NOI (US$14.3 million for the quarter).

Occupancy

(as part of GLA total)

Parking lots

83% 2,022

Terminal NOI (JLL est.)

US$ 84.38 m

MV (JLL est.)

US$ 666.5 m

Loan balance as for end of Q1, 2017

US$ 448.1 m

 Recent new openings at AFIMALL City include the Gulliver children goods outlet, Osteria Mario restaurant and Otto Berg fashion shop. As part of ongoing marketing efforts, in February 2017, AFIMALL hosted a casting session for the national beauty contest “Miss Russia 2017”.

ITEM, US$ million (1) Revenue (2) Operating expenses (3) NOI

Q1 2017 Q1 2016 Actual Actual 19.5 16.2 (5.2) (2.6) 14.3 13.6

Note: the NOI projections are “forward looking statements” based on JLL valuation assumptions and Company estimations and they can be realized or not realized due to factors beyond the Company's control including, among others, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions

7


Yielding Properties Building

AFIMALL Ozerkovskaya III* Berezhkovskaya Moscow

Moscow

Moscow City

CBD

Retail

Office A

GBA, sqm

275 046

61 579

11 612

5 848

GLA, sqm

107 208

46 247

10 274

2 022

466

83%

Location Class

Parking lots (total), # Ocupancy rate (31.03.2017), % NOI term., (JLL est.), US$ mn MV**, US$ mn

Moscow

Tverskaya Plaza II Moscow

Moscow

CBD Office & Street Office B Retail

Tvesrkaya Paveletskaya I Plaza Ib Moscow CBD Office & Street Retail

Moscow

H2O Aquamarine Hotel Moscow

Moscow CBD

Plaza SPA Plaza SPA Kislovodsk Zheleznovodsk

TOTAL

Caucasus region Caucasus region

Office B

Office B

Hotel

Hotel

Hotel

2 338

16 246

10 080

8 848

25 000

11 701

437K

5 024

2 050

13 412

8 990

159 keys

275 keys

134 keys

193K

140

-

-

86

81

2%

62%

98%

87%

2%

55%

84.4

29.4

2.9

1.5

0.6

2.6

1.8

-

-

667

199

16.4

9.2

3.5

12.0

9.3

16.3

45.6

15 68% ***

46 76%

14

***

****

79%

***

-

123

12.0

989

* GBA and GLA presented after disposal of Bld. 1. ** MV based on JLL valuation as for 31.12.2016 (there were no changes as of 31.3.2017). Hotels presented at cost value *** The hotel occupancy is presented as annual average **** MV of the Plaza Spa Kislovodsk is presented as 100% on a new cost basis, following consolidation of 100% in Q1 2017. Please see note 22 in the Consolidated Financial Statements for more details.

Note: the NOI projections are “forward looking statements� based on JLL valuation assumptions and Company estimations and they can be realized or not realized due to factors beyond the Company's control including, among others, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions

8


Project Update. Development Projects SECTION 3


Odinburg Residential GBA, 831.1K sqm GSA residential, sqm 462.0K STATUS: Delivery Bld.#2 SALES STATUS: Bld#1, Bld#2 are on sale Ownership:50%

Other 10


Odinburg Residential OVERVIEW  The ODINBURG residential district is located in the town of Odintsovo, a modern area considered to be one of the best and most environmentally clean towns in the Moscow region. (11 km from MKAD). A new highway to Moscow is in close proximity to the complex.  The entire residential district takes up an area of 33 hectares, which will host eight 8-to-25 story buildings. The residential element will offer 9,285 apartments and a total sellable area of 462K sq.m. (Including city share).

Ownership:50%

CONSTRUCTION STATUS and SALES  As of today, 716 out of 723 contracts for sales of apartments in Building 1 (39.16K sqm) have been signed, while for Building 2 534 out of 706 contracts (32.07K sqm) have been signed.  Parking lots sold: Building 1: 55 units out of 71. Building 2: 44 units out of 81.

(as of March 2017) Type

Residential

GBA, sqm GSA, sqm/GSA commercial total: GSA resi (Phase I), sqm: GSA resi (Phase II), sqm: GLA commercial, sqm: Apartments, total : Phase 1: •Building 1 •Building 2 Phase2:

831.1K 462.0/19.6K 154.8K 307.2K 19.6K

9,285 2,712 723 706 6,573

Parking units: Book value, US$ m (including value of unsold apartments): Outstanding loan, US$ m

 Construction of Building 2 is now over, delivery of apartments started in March 2017.  A credit line of RUR470 million (US$8.2 million) was obtained from Sberbank in April 2017. APARTMENTS DELIVERY Sales completed for 3m 2017

4,563 159 8.3

Apartments, quantity Apartments, sq.m Parking places, quantity Comercial premises, sq.m

251 14 456.80 3 471.10

Revenue Cost of sales Net profit Margin

RUB'000 1 281 545 1 192 513 89 032 6.95%

USD'000 21 781 20 268 1 513 6.95%

11


AFI Residence Paveletskaya As of March 2017 GBA (total), sqm:

136.1K

GBA (phase 1), sqm

52.9K

GSA (total), sqm:

79.4K

Apartments (total), amnt

549

Apartments (phase 1), amnt

175

“Special units” (total), amnt

187

“Special units“ (phase 1), amnt

187

Commercial space, sqm

17.3K

Commercial space (phase 1), sqm

6.1K

Book value, US$ m:

82

According to common market practice in Russia and to applicable Russian laws, preliminary sales of apartments during construction are done in the form of “contracts of participation in construction”, which are executed between the developer and purchaser of an apartment. These contracts are registered with state authorities and enter into legal force after this state registration. However the Company considers that signed contracts have high probability of registration and entering into legal force and reports “units sold” as the number of contracts signed with the apartments purchasers. “Special units” are premises legally not zoned for housing, but are widely sold for residence (a person cannot register in this address, but the premises can be used for housing). The prices of ‘special units’ are normally lower than that of similar apartments (properly zoned housing units).

 The construction continues as planned  As of today, contracts for 210 apartments and “special units” have been signed  Parking lots sold: 178 units.

12


Development Projects - Residential POCHTOVAYA

BOTANIC GARDEN

Botanic Garden

(as March 2017) Type Resi GBA, sqm 136.6K GSA, sqm 84.9K Parking Status

666 pp

MV, US$

74.1 mil

Pochtovaya

Launch of construction in Q1 2017

(as of March 2017) Type Resi GBA, sqm 200.6K GSA, sqm 116K Parking Status

794 pp

MV, US$

24.9 mil

Launch of construction in Q1 2017

Other

13


Development Projects - Commercial PLAZA IC

KOSSINSKAYA

(as of March 2017) Type GBA, sqm GLA, sqm Parking

Office A 61.8K 37.0K 521 pp

Status

Ready for construction launch 66 mil

MV, US$

(as of March 2017) Type GBA, sqm GLA, sqm Parking MV, US$

Plaza IV Plaza IC

Mixed use 108.0K 70.0K 1,200 pp 28.3 mil

Kossinskaya

PLAZA IV*

(as of March 2017)

Other

Type GBA, sqm GLA/GSA, sqm

Office A 108.0K 58.7/2.7K

Parking Status

1,210 pp

MV, US$

Preparing for construction 64.5 mil

*For 100% of the project


Financial update SECTION 4


Consolidated P&L Q1 2017 Q1 2016 Actual Actual

ITEM, US$ million (1) (2) (3)

USD=59 Construction consulting/management services 0.1 Rental income 25.5 Sale of residential and trading property 21.9

USD=75 0.0 20.0 7.3

47.5

27.4

(4) TOTAL REVENUE (5) (6) (7) (8) (9)

Other income Operating expenses Administrative expenses Cost of sales of residential and trading property Other expenses

(10) TOTAL EXPENSES (11)

Share of profit of equity-accounted investees

0.2 (12.3) (0.5) (20.3) (0.4)

2.2 (7.7) (1.7) (6.2) (0.0)

(33.4)

(13.4)

2.0

1.1

(12) GROSS PROFIT (LOSS)

16.1

15.1

(13)

(43.6)

(60.3)

(14) RESULTS FROM OPERATING ACTIVITIES

(27.5)

(45.2)

(15) (16) (17) (18) (19)

7.5 0.4 (16.5) 28.7

(0.0) 0.7 (10.7) 20.5

12.6 (7.4)

10.5 (34.7)

(0.5) 8.9

(0.1) 2.9

Valuation gain (loss) on investment property Profit on sale/disposal of properties/investment Gain on 100% acquisition of previously held interest ina JV Finance income Finance expense FX Gain/( Loss)

(20) Net finance income/(costs) (21) PROFIT BEFORE INCOME TAX (22) (23)

(24) PROFIT (LOSS) FOR THE PERIOD

Current income tax Deferred income tax

1.0

(31.9) 16


Balance Sheet as of 31 March 2017 #

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32)

Investment property Investment property under development Property, plant and equipment Long-term loans receivable Inventory of real estate Total non-current assets Trading property Trading properties under construction Inventory Short-term loans receivable Trade and other receivables Current tax assets Cash, cash equivalents and tradable securities Total current assets TOTAL ASSETS Equity Share capital Share premium Translation reserve Capital reserve Retained earnings TOTAL EQUITY Minority interest Long-term loans and borrowings Deferred tax liabilities Deferred income Total non-current liabilities Short-term loans and borrowings Trade and other payables Advances from customers Income tax payable Total current liabilities

(33) TOTAL LIABILITIES (34) TOTAL EQUITY AND LIABILITIES

Change YoY 31.03.2017 31.12.2016 31.03.2016 US$ mn US$ mn US$ mn US$ mn % 915.3 915.3 912.6 2.7 0% 1 158.8 232.9 237.0 (78.2) (33%) 79.1 31.2 28.3 50.8 179% 0.0 15.8 13.9 (13.9) (100%) 0.0 0.0 20.4 (20.4) (100%) 1 153.3 1 195.3 1 212.2 (58.9) (5%) 50.0 6.9 35.2 14.8 42% 1 292.1 243.3 178.7 113.4 63% 1.1 0.7 0.5 0.6 111% 0.4 0.0 0.1 0.3 242% 51.2 42.4 29.5 21.6 73% 2.5 2.5 1.7 0.9 54% 29.6 16.7 32.5 (2.9) (9%) 427.0 312.5 278.3 148.7 53% 1 580.3 1 507.8 1 490.6 89.7 6% 1.0 1763.4 (296.2) (13.7) (666.7) 787.8 (0.9) 469.0 2 11.6 11.6 492.2 193.4 2 54.0 53.7 0.0 301.2

1.0 1763.4 (311.2) (9.2) (667.8) 776.2 (3.8) 627.1 14.9 10.5 652.5 0.7 31.0 51.3 0.0 83.0

1.0 1763.4 (324.7) (9.2) (652.3) 778.3 (3.9) (0.0) 18.8 9.1 27.9 612.9 18.2 57.1 0.0 688.2

0.0 (0.0) 28.4 (4.5) (14.4) 9.5 3.0 469.0 (7.2) 2.4 464.3 (419.5) 35.8 (3.4) 0.0 (387.1)

(0%) (9%) 2% 1% (78%) n/a (38%) 27% n/a (68%) 196% (6%) (56%)

793.4

735.5

716.2

77.2

11%

1 580.3

1 507.8

1 490.6

105.1

6%

Notes:

1. In Q1 Bolshaya Pochtovaya was re-classified from Investment Properties under development to Trading Properties under construction

The Ozerkovskaya III loan was re-classified to short-term borrowings (maturity in less than 12m) 2.

17


Loans and cash position as of 31 March 2017  Gross balance of the bank loan portfolio (as of 31 March 2017) – US$ 662 million  Total cash balance and deposits (as of 31 March 2017) – US$29.6 million (including marketable securities)

Project

Bank

Historical debt limit

VTB AFIMALL TOTAL AFIMALL

Kislovodsk Odinburg TOTAL/AVERAGE RATE

Available (US$ mn)

Nominal Interest rate

Currency

171.2

-

9.5%

RUB

276.9

-

3m Libor + 5.02%

USD

448.1

0

7.20% 3m Libor + 8% from 24.01.15 to 20.03.15 3m Libor + 7% from 21.03.15 to 26.01.18

RUR 21 bn VTB

Ozerkovskaya III

Balance as of 31 March, 2017, (US$ mn)

Maturity

01.04.2018

VTB

$220 mn

191.6

0

VTB Sberbank

$22.5 mn RUR 470 mn

22.5 0.0 662.2

0 8.3

3m Libor + 4.5% 11.5% 7.46%

USD

26.01.2018

USD RUB

22.02.2022 19.03.2020

Financial covenants Ozerkovskaya III: Following execution of addenda to loan agreements in September 2016, the covenants in the Ozerkovskaya III facility (the LTV covenant and the DSCR covenant) were removed. Kislovodsk: 1) EBITDA/((Interest rate (LTM) + Debt (last reporting date)) – 0.32x; 2) Projected DSCR – 1.81x; 3) Positive value of net assets

18


Gross/Net Asset Value PROJECT

Book Value

Book Value Bank Loan

Net Company Share

31.12.2016

31.03.2017

31.03.2017

31.03.2017

667 16 12 9 199 3 9 915 66 65 28 74

667 16 12 9 199 3 9 915 66 65 28 0

(448)

218 16 12 9 7 3 9 276 66 65 28 0

TOTAL INVESTMENT PROPERTY UNDER DEVELOPMENT:

233

159

0

Ozerkovskaya Phase II (26) Odinburg TOTAL TRADING PROPERTY: Aquamarine Hotel Plaza SPA Zheleznovodsk Pyatigorskaya (Park Plaza Kislovodsk) Plaza Spa Kislovodsk (*) TOTAL PROPERTY PLANT AND EQUIPMENT: Odinburg Botanic Garden Paveletskaya II Bolyshaya Pochtovaya

2 5 7 15 11 4 14 44 145 22 77 0

2 48 50 16 12 4 46 78 112 25 82 74

TOTAL TRADING PROPERTY UNDER DEVELOPMENT:

243

292

0

292

1 443

1 494

(662)

832

AFI Mall Berezhkovskaya (100%) Paveletskaya I Plaza H20 Ozerkovskaya III Plaza Ib Plaza II TOTAL INVESTMENT PROPERTY: Plaza Ic Plaza IV (100%) Kossinskaya Bolyshaya Pochtovaya

TOTAL PORTFOLIO:

(192)

(640)

0

(23) (23)

Loans To Assets Value = 44% (LTV ratio) Loans To Equity (LTE ratio)

= 84%

159 2 48 50 16 12 4 23 56 112 25 82 74

CASH AND CASH EQUIVALENTS DEFFERED TAX LIABILITY TOTAL OTHER ASSETS AND LIABILITIES

30 (12) (62)

TOTAL EQUITY:

788

* 31.12.2016 for 50% of the project; 31.03.2017 for 100% of the project 19


Market Update SECTION 5


Macro Overview and RE Investment Market RUSSIAN MACROECONIMIC OVERVIEW

RUSSIAN REAL ESTATE INVESTMENT MARKET

• Russian economic growth: OECD has reported the Russian 2016 GDP at -0.8% with 2017 forecast at +0.75% .

• During Q1 2017, about US$778 million (JLL) were invested in Russian commercial real estate (22% decline year-on-year).

• Exchange rates: The rouble has continued to strenghen against the US Dollar, supported by stable oil prices. The spot RUR/USD rate during Q1 2017 fluctuated between 57 and 61. The rate at 30.03.2017 was RUR56.38 (vs. RUR60.66 on 31.12.2016).

• According to JLL, in Q1 2017 54% of the volume was invested in the retail segment, 29% in retail and 17% in hotels. 79% of the invested capital was of Russian origin.

• The Central Bank of Russia (“CBR”), has reduced the key lending rate to 9.25% on 2 May 2017, reflecting further stabilisation in the macroeconomy. • Inflation: The consumer prices inflation in March 2017 was at 4.3% (annualised) (with CBR target at 4%).

• The disposal of the Shopping Centre Leto in S. Petersburg by Sistema Hals was the largest transaction of Q1 2017 (estimated at RUR 10 billion). Russian investors continue to dominate the market. Forecasted Investment Volume in 2017 (USD billion)

JLL

CBRE

C&W

4.5 *

5

4.5

* JLL estimation excludes acquisitions by end-users and joint ventures

CBR policy rates and inflation

Source: CBR, RBC, OECD 21

Source: C&W, JLL, CBRE


Office and Retail Markets Overview OFFICE MARKET OVERVIEW

RETAIL MARKET OVERVIEW

• The take up in Q1 2017 was 239 thousand sq.m, a 14% increase vs Q4 2016 (CBRE). The take-up was concentrated in the zones outside the CBD and was led by the financial sector. The delivery of quality space in Q1 amounted to only 21 thousand sqm (quarterly minimum in years), vs 60 thousand sqm in Q4 2016.

• No shopping centres were opened in Moscow in Q1 2017.

• The vacancy rates in class A and B remain high: According to CBRE, in Class A the vacancy was recorded at 19.0% (vs 18.6 % in Q4 2016) and in Class B at 14.7% (versus 14.9% in Q4 2016). • In Q1 2017 the rents remained relatively stable. Asking rents for Class A non-prime central premises were at US$600750 psqmpa. Asking rents for off-centre Class A office buildings were US$400-600 and for Class B $200-400. Rouble denominated rents prevailed in Q1 2017 (97% of leases, according to C&W) Base Rent, US$ psqmpa

A class

B class (B+&B-)

Key indicators

Units

Base rent Class A (Prime), US$ psqmpa

600-750

Base rent Class A, US$ psqmpa

400-600

Base rent Class B, US$ psqmpa

200-400

• 6 new international brands entered the market in Q1 2017, including Ahimsa, who opened their first to Russia shop in the AFIMALL. • The vacancy rate across Moscow shopping centres as of the end of Q1 2017 was at 9.5% (CBRE). • Turnover rent with a low minimum rent continues to be the most common lease structure. Fixed exchange rates are commonly provided to tenants.

C&W Prime rental rate indicator, US$ psqmpa

Key indicators

Prime rent, RUR psqma (prime shopping

Units

195,000

centre gallery)

Overall vacancy,%

15.8%

Vacancy rate, Class A, %

19.0%

Average rent, RUR psqma

74,000

Vacancy rate,%

9.5%

Source: CBRE, JLL, C&W Source: JLL, CBRE, C&W 22


Residential Market Overview RESIDENTIAL MARKET MOSCOW AND MOSCOW REGION

Average weighted asking price in primary residential market of “old” Moscow, by districts, end of February 2017 (RUR psqm)

MOSCOW:

• At the end of Q1 2017 the supply on the “Old Moscow” primary residential market (excluding “apartments” – “special units”) was about 2.67 million sqm (about 41,700 residential units). The supply in “New Moscow” was about 572.0 thousand sqm (data by Miel Real Estate). • By the end of Q1 2017 the weighted average asking price in the newly built business class residential market in Moscow amounted to RUR246,500 psqm (US$4,177, USD/RUB = 59). Compared with the end of Q4 2016, the prices increased in average by 1% in roubles. In the comfort class the weighted average asking price was RUR151,137 psqm (US$2,399, USD/RUB = 63). MOSCOW REGION:

Zelenograd

North North-East

East North-West

Central West

• At the end of Q1 2017, the primary market supply (newly built residential units) in the Moscow region amounted to 3.13 million sqm (a decrease of 6.1% vs Q4 2016, according to Miel Real Estate). • As of the end of Q1 2017 the weighted average price per sqm in the Moscow region was RUR85,000 (US$1,440, USD/RUB = 59), a 12% increase in roubles, compared to end of Q4 2016 (data by Miel Real Estate).

Source: Miel Real Estate, Azbuka Zhilya

South-East

South South-West

Source: NDV Real Estate 23


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