TMM Purchases 82% of a New Business Center Project in Kyiv

TMM (TR61: BUY) has concluded an agreement to purchase 82% of a new business center project in Svyatoshyn district of Kyiv (5 Uborevycha St.). According to the agreement, TMM will act as both an investor and general subcontractor to the project. The business center is planned to be 23-stories with a total area of 56.8 thousand sq. m. This includes B+ class offices with 36.7 thousand sq. m of useful area and a built-in 4-story parking lot. The total area of the land plot is 0.42 hectares. Andriy Gostik: The office project on Uborevicha is brand new and comes in addition to the eight other new projects currently being appraised by Colliers (see our note of April 03). We view further diversification into the commercial segment as positive for the company’s long-term prospects. TMM intends to increase the share of commercial real estate in its portfolio to 25% over the next three-five years.