XXI Century Rezones Lisnyky Site

XXI Century (XXIC LN: BUY) announced it successfully rezoned its Lisnyky project site in Kyiv. In a press release, the company said that 46.8 ha of the Lisnyky site, previously authorized for agricultural use only, has now been rezoned for residential purposes. Groundbreaking is scheduled to take place this year with completion in 2012. Construction costs for the project were estimated at USD 134 mln. As of December 31, 2007, the project was valued by Jones Lang LaSalle at USD 204.8 mln, making it the second largest asset in the company’s portfolio. Alexander Romanov: The rezoning is in line with the previously declared project delivery schedule and we think the market has already factored it into the stock’s price. Rezoning of the Lisnyky site mitigates project execution risk and we estimate that this could increase the appraised value of the property by 10% due to lower discount rates.