OREANDA-NEWS. November 02, 2011. LSR Group (LSE: LSRG; MICEX, RTS: LSRG), one of the leading real estate developers and building materials producers in Russia, is publishing the operating update for the third quarter of 2011, reported the press-centre of LSR Group.

In nine months of 2011 in all regions of our operations we completed 7 th m2, signed new contracts for the sale of 234 th m2 and transferred to the customers 143 th m2. The total value of the contracts signed amounted to RUB 17.6 billion, up 81% against the corresponding period in 2010.

Elite Residential and Commercial Property in St. Petersburg

In 3Q 2011, in the elite real estate segment in St. Petersburg, we entered into new contracts with customers for the sale of 8 th m2 of net sellable area, down by 23% on 3Q 2010. In the first nine months of 2011 we signed new contracts for the sale of 32 th m2 of net sellable area, up 33% year-on-year. The total value of contracts for the sale of elite real estate in the first nine months of this year was RUB 4.6 billion (+22%).


In the course of the third quarter we transferred to our customers 5 th m2 of net sellable area. Absence of housing completions in 3Q was due to the timetable of projects implementation.

Business class and mass market residential real estate in St. Petersburg

In 3Q 2011 we entered into new contracts for the sale of 75 th m2 of mass market housing, up 144% on our sales in the market in 3Q 2010. In the first nine months of 2011 we signed new contracts for the sale of 135 th m2 of net sellable area, up 103% year-on-year. The total value of the contracts signed in the first nine months of 2011 was RUB 9.4 billion (+102%).

In the course of the third quarter we transferred to our customers 25 th m2 of net sellable area. Absence of housing completions in 3Q was due to the timetable of projects implementation.

Real Estate in Yekaterinburg

In 3Q 2011, in Yekaterinburg, we entered into new contracts with customers for the sale of 22 th m2 of net sellable area, up 122% against 3Q 2010. In the first nine months of 2011 we signed new contracts for the sale of 48 th m2 of net sellable area, up 139% year-on-year. The total value of the contracts signed in the first nine months of 2011 was RUB 2.4 billion (+153%).

In 3Q 2011 we transferred to customers 3 th m2 of net sellable area. Absence of housing completions in 3Q was due to the timetable of projects implementation.

Real Estate in Moscow

In Moscow in 3Q 2011 we entered into new contracts with customers for the sale of 11 th m2 of net sellable area. The total value of the contracts signed in the first nine months of 2011 was RUB 1.3 billion. Absence of housing completions in 3Q was due to the timetable of projects implementation.

Construction

In 3Q 2011, LSR Group’s subsidiaries in St. Petersburg, Moscow and Yekaterinburg transferred to customers 201 th m2 of panel housing (+15% year-on-year), in the first nine months of 2011 - 467 th m2 (including sales of reinforced concrete panels in Yekaterinburg), an increase of 3% year-on-year.
Building Materials

Reinforced Concrete

In 3Q 2011, we sold 129 th m3 of reinforced concrete products (excluding sales in Yekaterinburg), up 49% on the same period of 2010. It included 107 th m3 in St. Petersburg, and 23 th m3 in Moscow.

In St. Petersburg in 3Q 2011 we supplied our reinforced concrete items for the construction of several residential and commercial projects as well as for large infrastructure projects including Ust-Luga port.

In 3Q 2011, in Moscow we primarily supplied our reinforced concrete items for residential and infrastructure projects including our own real estate development projects.

Aerated Concrete

Aerated concrete sales amounted to 276 th m3 in 3Q 2011. St. Petersburg accounted for 130 th m3, another 146 th m3 were sold in Ukraine. Our sales volume in the regions mentioned above grew by 14% year-on-year.

In 3Q 2011, the bulk of aerated concrete in St. Petersburg was supplied to residential and commercial projects.
Most of aerated concrete in Ukraine was supplied to infrastructure and residential projects.

Ready-Mix Concrete

In 3Q 2011 ready-mix concrete sales were 426 th m3 (excluding sales in Yekaterinburg), up 13% year-on-year. It included 307 th m3 sold in St. Petersburg and 120 th m3  in Moscow. Growth of sales was mainly driven by increased volume of residential, industrial and infrastructure construction.

In 3Q 2011, in St. Petersburg we primarily supplied our ready-mix concrete to industrial, infrastructure, commercial and residential construction projects. In Moscow we mainly supplied ready-mix concrete for residential construction.

Bricks
 
Our bricks sales amounted to 60 million non-formatted units, up 7% against 3Q 2010.

We primarily supplied bricks for construction of large residential complexes in St. Petersburg. Also approximately 7 million non-formatted units were sold by our brick plant in the Moscow region.

Cement
In summer 2011 we completed commissioning of our new cement plant. The first batches of clinker were produced in August, which according to laboratory tests conforms not only Russian but also the latest world standards. As of today we started production of cement which is already supplied to our subsidiaries, in particular for production of ready-mix concrete. As of the end of 3Q 2011, the plant employed 380 people.

Aggregates

Sand
Sand sales in the third quarter of 2011 were 3.4 million m3, down by 8% on 3Q 2010. In the first nine months of 2011, we increased our sales by 9% year-on-year.

In Q3 2011, we primarily supplied our sand for large infrastructure projects including Western High Speed Diameter.

Crushed Granite

In 3Q 2011, our crushed granite sales totaled 2 million m3, up 57% on 3Q 2010. Improved sales of crushed granite were due to a continuing market recovery and in particular the increased activity of the ready-mix concrete and reinforced concrete producers.