Latest Portfolio Valuation an

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[{"type":"text","content":"\n RNS Number : 6135S Aisi Realty Public Limited 21 May 2009  \n \n21 May 2009\n\nAisi Realty Public Limited \n ('Aisi' or 'the Company')\n\n\nLatest Portfolio Valuation and Trading Update\n\nAisi, a property investment company focusing on development projects in Ukraine, today provides a trading update ahead of the announcement of its audited financial results for the year ended 31 December 2008 in mid-June 2009.\n\nFollowing an updated valuation conducted by DTZ Kiev B.V., the independent chartered surveyors, the Company's property portfolio was valued at $64.9 million as at 31 December 2008, compared with $89.9 million as at 30 June 2008.\n\nThe revised portfolio valuation reflects the impact of the global credit crunch and an exceptionally challenging economic environment. The combination of a steep contraction in industrial production, and a shutdown in bank financing for commercial and residential developments, have all but halted Ukrainian real estate markets both in terms of construction and transactions.\n\nAs we expect operating conditions to remain difficult throughout 2009, the Company has shifted its strategy from aggressive growth to consolidation of existing assets. In particular, Aisi is focusing on:  \n\n\n\nTight management of cash flow and working capital  \n\n\nGeneration of cash from completed projects\n\n\nRecovery of advances from the pipeline projects and asset sales\n\n\n\nKey projects\n\nThe most imminent cash flow-generating asset for the Company is Terminal Brovary, a 49,180 sq.m. warehouse on the outskirts of Kiev that has been pre-leased for 10 years to a leading local logistics operator, and is due for completion and occupancy by the tenant in the third quarter of 2009. Delays in access to the first tranche of a $34.4 million debt facility approved by the European Bank of Reconstruction and Development in January 2009 have hampered progress with this project. The Company is currently working closely with potential syndicate banks and possible joint venture partners to resolve the funding bottleneck, and intends to complete the project in Q3 2009. \n\nThe second project under construction, Bela Logistics&nbs...

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