TMM subsidiary wins a USD 135 mln building contract

“Company T.M.M.”, a subsidiary of Ukrainian developer TMM Real Estate (TR61 GR), won a tender worth UAH 1.105 bln (VAT included) to build government office buildings, the Interfax-Ukraine news agency reported on September 26. TMM will construct in 78.5 months offices for the Higher Economic Court of Ukraine and Higher Administrative Court of Ukraine at a total area of 106K square meters, according to the provided details. The deadline to sign the agreement with the tender winner is October 24.

Alexander Paraschiy: This is clearly a big deal for TMM, which generated just USD 7.7 mln from its provision of construction services to third parties in 2012, and USD 1.8 mln in 2011. If signed, the deal will generate about USD 17 mln in additional revenue in each of the next six years. While the contract seems to have not yet been signed, we see the news will be encouraging for TMM deposit receipts.