OREANDA-NEWS. On 11 June 2008 XXI Century, one of Ukraine's leading real estate investment, development and property management companies, announced the following update on the development progress of the projects in its portfolio.

Completed project

The opening of Kvadrat-Perova shopping centre in March, the first hypermarket gallery format shopping and entertainment complex that XXI Century has developed, was well-received by the media. Kvadrat-Perova, which is the largest shopping centre on the left bank of the Dnipro river in Kyiv with a catchment population of 160,000, was fully leased by the time of opening on 30 March. This modern facility was recently named “Best Project of the Year” by the First National Commercial Property Awards in Kyiv.

Projects in development

XXI Century is proceeding according to schedule with projects in the construction phase and has received concept approvals and construction permits for a number of these properties.

Construction permits have been received for the first stages of both Lviv mixed-use sites and the Petrivka business centre, the permit for the latter being received three months ahead of schedule.  The first stage works at Petrivka include fencing of the site, demolition of existing buildings and establishing networks and transportation schemes, as well as other preparation works. At the Lviv mixed-use sites, the original buildings have already been demolished and XXI Century has now commenced work on the foundations of the Kvadrat shopping centre planned for one of the sites.

The Berezneva mixed-use project, the Brovarskyi business centre and Voznesenskyi Yar residential project in Kyiv have all successfully received project approvals from Kyiv City Council.  These projects are now at the pre-construction stages with construction permits expected to be received shortly.  The Company has filed the required detailed project documentation with the local authorities and anticipates that their review will be finalised during the third quarter of 2008.

The Poltava and Cherkasy mixed-use projects have both successfully received concept approval from their respective City Councils, which has enabled XXI Century to appoint architects and proceed with detailed project design

With respect to the 969,000 sq. m. Virlytsia mixed-use project, following discussions with general contractors, the Company has reviewed and simplified the ground work plans which has resulted in a substantial reduction in the site preparation costs. The Company has also now appointed and signed an agreement with a specialised contractor with extensive waterfront construction experience in Ukraine.  The architectural concept on this project was provided by London-based architectural bureau, Benoy.

A general contractor agreement has also been signed for the Kvadrat-Myloslavska project where the Company has successfully completed all outstanding procedures and commenced ground works on the site. Leading international architects, Chapman Taylor are now developing the exterior and interior concepts for the shopping centre.

Construction works on the Kvadrat-Balzaka shopping centre and Parus residential building in Kyiv and on the Sevastopol mixed-use and residential Sevastopol Park Pobedy projects in Crimea are progressing according to schedule. The official commissioning process on the Capitoliy premium class residential project in Kyiv has been initiated.

Acquisitions

There were no new acquisitions in the first five months of the year.

Letting

The Company is in the process of negotiations with anchor tenants for its Kvadrat chain of shopping centres across Ukraine.  Pre-lease agreements have been signed with a national chain of children’s closing and toy stores, one of the biggest cinema chains in Ukraine and a bowling operator for the Kvadrat-Myloslavska project in Kyiv. XXI Century is also in the process of reviewing proposals from hypermarkets, bowling operators and other tenants for the Vyrlytsya and Lisova projects in Kyiv as well as for the Kvadrat shopping centres in Lviv, Sevastopol, Simferopol, Cherkasy, Donetsk, Sumy and Kharkiv.