OREANDA-NEWS. January 23, 2008. XXI Century Investments, one of Ukraine's leading real estate investment, development and property management companies, has announced the results of its property portfolio appraisal by Jones Lang LaSalle.

As of 31 December 2007, based on Jones Lang LaSalle's appraisal of the Market Value of the portfolio, the value of the Company's share of the portfolio was approximately US$2.02 billion. This represents an increase of 30% compared to the value of the portfolio as at 30 June 2007 (US$ 1.54 billion).

This growth reflects the significant progress of existing projects and the increased value of recent acquisitions.

The growth in the value of the Company's portfolio is mainly the result of organic growth. Approximately 79% of the growth in the value is attributable to the change of status of 34 assets which were included in the Company's portfolio at the end of the first six months of 2007. The major events in the period include:

- receipt of construction permits for the following projects; first stage of Virlytsia mixed-use project (18% of the portfolio value as at 31 December 2007), Sevastopol serviced apartments, Kvadrat-Sevastopol and Kvadrat-Myloslavska shopping centres and a permit for preliminary construction works in the Vasylkiv logistics complex (collectively 7% of the portfolio value as at 31 December 2007);

- approval of the project design for the following projects; Luteranska Sofitel hotel, Voznesensky Yar mixed-use development, Kvadrat-Myloslavska shopping centre, Sevastopol mixed-use development, Kvadrat-Simferopol shopping centre and Brovarsky Business Centre (collectively 15% of the portfolio value as at 31 December 2007);

- approval of the concept design for Petrivka, Posolsky Dvir, Berezneva, Lviv and Poltava mixed-use complexes, as well as three logistics complexes (collectively 17% of the portfolio value as at 31 December 2007); the architectural concept has also been completed for Kyianivsky (3% of the portfolio value as at 31 December 2007);

- progression in rezoning and land lease agreement extensions for Lisnyky, Capitoliy, Parus, Lviv mixed-use and logistics projects (collectively 18% of the portfolio value as at 31 December 2007);

- impending completion of construction of Kvadrat-Perova shopping centre and continued construction progress in Kvadrat-Balzaka shopping centre, with 100% and over 40% of gross leasing area pre-let respectively. Kvadrat-Lukyanivka is on track with the 2007 revenue target and is 100% leased (collectively 7% of portfolio value as of 31 December 2007); and - further progress in various stages of the permitting process for the other assets acquired in 2006 and 2007.

The remaining 21% of the growth in the value of the Company's portfolio is attributable to the revaluation of eight new projects in Kyiv, Dnipropetrovsk, Kharkiv, Donetsk, Cherkasy and Simferopol included in the portfolio in the second half of 2007. These acquisitions include two operating office centres in Kharkiv purchased at a discount to their fair value. The appraised value of projects under development is above their purchase price due to the progress the Company has achieved in rezoning and concept design since the acquisition.

The results of the appraisal will be reflected in the Company's 2007 financial results. The Company expects net debt as at 31 December 2007 to be approximately US$220 million and accordingly NAV is expected to amount to approximately US$1.8 billion as at 31 December 2007. This would result in an increase of approximately 20% over the NAV at the end of the first six months of 2007 (US$1.498 billion as at 30 June 2007). As of 21 January 2008, the market capitalization of the Company was US$953 million.