LSR Group

LSR Group Real Estate Portfolio at 31 December 2011

As of 31 December 2011, the net sellable area of the projects in our portfolio is equal to 8,416 th m2 (+8% against 2010). The real estate portfolio of LSR Group includes properties/projects in the residential elite class, business class and mass market property, gated communities and commercial property segments.

Real estate development projects of LSR Group are located in St. Petersburg, the Leningrad Region, Moscow, the Moscow Region and Yekaterinburg.

Valuation of Real Estate Portfolio
The market value of our holdings in our real estate portfolio accounted for RUB 124,364m as of 31 December 2011 (+20% against 2010).

The valuation of our real estate portfolio as of 31 December 2011 was undertaken by Cushman & Wakefield as an independent external appraiser.

Breakdown of Real Estate Portfolio by Segment
Our real estate portfolio is well-balanced across the various property segments thus making it possible to offer property targeting distinct consumer groups. In terms of net sellable area, major part of the portfolio (incl. land plots held for future development) accounts for mass market residential real estate which is always characterized by higher volume of demand. The portfolio also includes residential elite (or high-end) and business class development projects, gated communities and office developments. These segments account for a smaller part of the portfolio in terms of sellable area however they account for a more substantial part of market value due to higher prices per square meter compared to mass market properties.

Segment of property	Net sellable/leasable area, excl. car parking, th s qm		Market Value, RUB m
Mass-market	3,819	45.4%	56,245	45.2%
Elite*	205	2.4%	21,947	17.6%
Business class	320	3.8%	14,896	12.0%
Offices	54	0.6%	6,720	5.4%
Operating offices	25	0.3%	4,974	4.0%
Held for future development	3,992	47.4%	19,583	15.7%
Total	8,416	100%	124,364	100%

*Elite segment of property value is calculated including Gated communities.

Breakdown of Property Portfolio by Stage of Development

At 31 December 2011 our real estate portfolio includes 732 th m2 of net sellable area at the construction stage and 3,051 th m2 at design stage.

We also have 21 th m2 of the completed properties and 25 th m2 of net lettable area of the operating offices. 4,586 th m2 of net sellable area are at the stage of concept development.

Segment of development	Net sellable/leasable area, excl. car parking, th s qm		Market Value, RUB m
Concept development	4,586	54.5%	31,942	25.7%
Designing	3,051	36.3%	55,742	44.8%
Construction	732	8.7%	28,420	22.9%
Completed	21	0.3%	3,285	2.6%
Operating offices	25	0.3%	4,974	4.0%
Total	8,416	100%	124,364	100%

Breakdown of Property Portfolio by Region

Most of our properties – approximately 85% of the portfolio by area and 76% by value – are located in our home market in St. Petersburg. During the course of 2011 share of projects in Moscow and Moscow region in our property portfolio grew more than twice: from 8% to 21% in market value and from 4% to 10% in net sellable area.

Region	Net sellable/leasable area, excl. car parking, th s qm		Market Value, RUB m
St. Petersburg	7,168	85.2%	94,173	75.7%
Moscow	854	10.2%	25,559	20.6%
Yekaterinburg	393	4.7%	4,632	3.7%
Total	8,416	100%	124,364	100%

LSR Group’s Real Estate Portfolio Valuation at 31 December 2011
	Full LSR Group Real Estate Portfolio Valuation Report	download
	LSR Group Real Estate Portfolio Valuation Summary	download

LSR Group’s Real Estate Portfolio Valuation at 31 December 2010
	Full LSR Group Real Estate Portfolio Valuation Report	download
	LSR Group Real Estate Portfolio Valuation Summary	download

Previous real estate portfolio valuations: