XXI Century sells Kobzar Business-Centre in Kharkiv

XXI Century (XXIC LN: BUY) announced yesterday that its 50.01% subsidiary, IC XXI Century Kharkiv LLC concluded an agreement to sell a ~100% stake in the Kobzar Business-Centre project (total area of ~10,200 m2) in Kharkiv to anchor tenants. The volume of the deal is USD 14 mln (set according to the latest independent appraisal by Jones Lang LaSalle as of December 2007), which will be settled via a series of cash payments over a six month period with the final payment due prior to February 2009. Alexander Romanov: The project was acquired by the company in 2007 for the effective price of USD 10 mln. We expect XXI Century to continue selling off its completed office and retail properties in order to finance current developments against the backdrop of tight capital markets.