XXI Century Commences Construction in Sevastopol

XXI Century (XXIC: BUY) started construction of a mixed-use center in Sevastopol, according to a company’s press release. The Sevastopol complex will cover a total area of approximately 91 ths m2 and consist of a Kvadrat shopping center (45 ths m2) and a residential complex (46 ths m2). The Kvadrat center is scheduled to be completed in 2009 and residential section in 2010. As of December 31, 2007 the project was valued by Jones Lang LaSalle at USD 37.8 mln. Alexander Romanov: The beginning of construction meets XXI Century’s previous statements regarding scheduling, and we think is already factored into XXIC’s price by the market. The company has to spend USD 35-40 mln on this project during 2008, part of which will be covered by presales of residential space.