TMM to invest USD 25 mln in residential projects in 2010

TMM Real Estate (TR61 GR) CEO Mykola Tolmachov said yesterday at a press conference that his company plans to invest USD 25 mln into residential projects in 2010 about twice less than the approximately USD 50 mln in 2009. Tolmachov also said the company finished construction of its Flamingo premium-class residential complex in Kharkiv. Flamingo has a total area of 4.7 ths m2 and will officially open on July 25. Tolmachov said TMM plans to complete the Karat 6.1 ths m2 premium-class residential project, Green Town 25.6 ths m2 business-class residential complex and the Cascade 12.01 ths m2 residential complex in Kharkiv this year. Andriy Gostik: This news is neutral for the stock’s price. Demand for housing as well as the availability of credit financing remains uncertain in 2010, which is causing real estate developers to cut capital spending and freeze projects in the early stages of development. In our view, the market correctly perceives sector risks and has priced them in. News of the Flamingo complex’s completion was also fully expected thanks to the company’s previous guidance.