Lastochkino Gnezdo Project Presentation slide image

Lastochkino Gnezdo Project Presentation

Multiple generations of growth opportunity 22mn Total # of households in target market 6300 12% MMA and SPMA are the most attractive residential markets in Russia MMA & SPMA - most populated Russian regions... Total: 142mn(4) Potential demand estimation (ths. households) Potential demand estimation (mn sqm) 50 45 8000 1700 40 35 85% MMA SPMA Other ...with growing demand for residential real estate Population growth/ (decline) in 2007-2010(4) Households with income within target price-range Households planning to improve living conditions Satisfied households 56% (8) Households with preference for primary market 622 Secondary preference 1.3% Indicative 0.6% Regional demand 0.4% potential market(3) 622 Investment demand ■Secondary prefernce 30 Higher 1852 Lower income income 25 20 Opportunity gap 60% (7) 15 1111 10 5 3.3 2.7 3.2 Béliveric 0 2008 2009 2010 201 Potential demand households * 75 sqm = 46.7 mn sqm 622 SPMA MMA MMA SPMA Other The above set of simple assumptions further supports the existence of significant unsatisfied demand for value-added housing in MMA and SPMA (1)Company estimates based on Rosstat's methodology and data; includes additional demand from mortgage users share of sales with mortgage in total sales is 12%, according to MER (assuming no overlap between mortgage and instalments customers); (2)1H2010 new supply volume of Middle Class residential properties on the primary market, according to MIAN and SPb Realty, converted from sqm into housing units, assuming that 1 flat = 85.3 sqm (average flat size in Russia in 2009, Rosstat)); (3)The demand structure shown on the pie chart is for indicative purposes; (4) Rosstat data as of January 2010; (5) Residential real estate commissioning, excluding individual construction; (6) Calculated as residential real estate commissioning volume in 2009 (excluding individual construction) multiplied by average real estate RUR prices on the primary market in 2009 and divided by end of period official CBR RUR/US$ exchange rate in 2010 (RUR/US$ 30.5); (7)60% of households plan to improve living conditions (source Rosstat; Comcon, 2010); (8)56% of consumers prefer primary vs. secondary residential real estate market (Source -Metrinfo survey in Moscow, 1H 2010) Etalon Group 08 80
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