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Mongolia Growth Group Ltd. Publishes October 2013 Monthly Letter to Shareholders
Mongolia Growth Group Ltd. Publishes October 2013 Monthly Letter to Shareholders Calgary, Al...
About this update from Mongolia Growth Group Ltd.
[{"type":"text","content":"Mongolia Growth Group Ltd. Publishes October 2013 Monthly Letter to ShareholdersMongolia Growth Group Ltd. Publishes October 2013 Monthly Letter to Shareholders\nCalgary, Alberta CANADA, November 15, 2013 /FSC/ - Mongolia Growth Group Ltd. (YAK - TSX Venture), a real estate company participating in the dynamic growth of the Mongolian economy via ownership of institutional-quality commercial property assets in Ulaanbaatar, Mongolia, is pleased to announce the release of its October 2013 letter to shareholders.\nTo the Shareholders of Mongolia Growth Group Ltd.,\nPlease note that as part of our effort to provide maximum transparency to investors, we will begin providing monthly data on same store rental growth along with property occupancy data. \nIn October 2013, MGG's core commercial property portfolio* experienced a same-store rental increase of 21.4% relative to October 2012 on properties owned 12 months or longer as measured in local currency (Mongolian Togrog).  The occupancy rate for the core portfolio in October 2013 was 93.9%, including an occupancy rate of 98.7% for core retail properties and an occupancy rate of 84.9% for core office properties.\nPortfolio, Operations, and Development Update\nPortfolio\nDuring the month of October we continued on-track with our plan to shift MGG's asset mix away from smaller properties that are proportionately more expensive to maintain and manage, and towards larger institutional-quality assets that are easier to scale as we build MGG into a premium asset quality real estate company.  This repositioning is making progress and we have now sold 5 of the 23 assets we set out to dispose of starting in May of 2013 and reinvested the proceeds in-line with our strategic plan.  We expect to substantially conclude the repositioning by the middle of 2014.\nOperations\nWe have seen an increase in demand for high quality properties following the passage of the new foreign investor law. We have recently signed a number of new leases and expect to renew many of our existing leases at higher than prevailing rates over the next few months. For a point of reference, our most recently signed retail leases were at 52,690 MNT a meter per month and 42,685 MNT a meter per month, while September's average high-street retail rent per meter was 20,201 MNT per month. While these ar...