OREANDA-NEWS. On 04 March 2008 JSC RTM released a report by independent consultants Colliers International that puts the market value of the portfolio of properties controlled by JSC  RTM at $790.2 million as of December 31, 2007, which is $146.9 million, or 22.8%, higher than the previous valuation made on June 30, 2007.

Properties held as investments are valued at $587.6 million (+15% since the June 30, 2007);

Properties in the course of development are valued at $161.7 million (+188.3% since the June 30, 2007);

Properties held for development are valued at $40.9 million (-46.4% since the June 30, 2007).

This increase in the value of projects in the course of development and the decrease in the value of projects held for development can be attributed to the transfer of two of RTM's large development projects in Odintsovo and Samara from the “Properties held for development" phase to the "Properties in the course of development“.

Total area of JSC  RTM's properties is 563,764 sq. m. including 381,823 sq. m. of rentable area.

In addition to its involvement in the development of commercial real estate, JSC  RTM is implementing a residential complex construction project in Bryansk. The agreement between the Administration of the Bryansk Region and the RTM Group regarding the implementation of a complex territory development project on a plot of land in Bryansk was signed on October 25, 2007. The cap on the total area of residential space to be constructed on the allotted plot of land was set at 250,000 sq. m. The total area of the future shopping and entertainment center will be equal to 53,316 sq. m.

JSC  RTM owns a 75% stake in OOO ReMa Immobilien which in turn is the owner of 18 real estate properties with the total area of 53,322 sq. m. that are being rented by the Billa chain of supermarkets.

As of December 31, 2007, the market value of the JSC  RTM's properties less the value of the minority stake belonging to OOO ReMa Immobilien grew by 24% and reached $742.9 million.

In the second half of 2007 the construction of a 69,477 sq. m. shopping center in Odintsovo, Moscow Region, and a 57,075 sq. m. shopping and entertainment center in Samara commenced. Also, in the first half of 2007 the company commenced construction of a shopping and entertainment center in St. Petersburg and a shopping and entertainment center in Lipetsk, with the total area of 24,840 sq. m. and 48,880 sq. m. , respectively. Thus, by the end of 2007 nearly all of the major projects that had been announced got propelled into the construction phase. Construction of the rest of commercial real estate projects is to start this year.

In addition, as part of consolidation of the Krasnoyarsk shopping center “Na Svobodnom", JSC  RTM purchased an additional 8,465.8 sq. m. of the center's space in November of 2007.

Currently RTM portfolio includes 57 commercial real estate properties: 47 held as investments, 7 in the course of development and 3 held for development.

"The valuation of our portfolio attests to the fact that RTM made the right choice in defining its current development strategy. This is a testament to the company's strict adherence to the stated objective of implementing the projects it holds in its portfolio“, noted Eduard Vyrypayev, General Director of JSC  RTM. “Relying on our solid presence in promising regional real estate markets we intend to elevate our further regional expansion to a new level of sophistication. We also believe that the announced valuation results will serve to strengthen the basis for further growth of the RTM share price and the overall company's market capitalisation".