Russian real estate developer Sistema-Hals has posted a net loss of $110.8 mln (EUR 76 mln) in the first six months of 2009 as a result of 'depressed conditions in the Russian real estate market.' The figure compares to a net profit of $8.7 mln for the same period in 2008.
Russian real estate developer Sistema-Hals has posted a net loss of $110.8 mln (EUR 76 mln) in the first six months of 2009 as a result of 'depressed conditions in the Russian real estate market.' The figure compares to a net profit of $8.7 mln for the same period in 2008.
'Due to the state of the Russian real estate market there is considerable uncertainty as to the budgeting, financing, valuation and delivery of our projects,' said Igor Kascheev, president of Sistema-Hals.
Revenues fell by 76% to $47.7 mln in the first half of 2009 compared to $197.8 mln in the same period a year before. The value of the company's assets fell by 7.5% to $1.7 bn in the first six months of 2009, from $1.9 at end-December 2008.
The company does not expect conditions to improve in the foreseeable future, as the market is characterized 'by limited transactional activity, falling asset prices, limited financing and an increasing number of forced sales.' In these conditions the London-listed property company remains dependant on support from its major shareholders, it added.
Sistema-Hals' developments include the landmark Leningradsky Towers complex, consisting of two buildings, one of which will house the Moscow headquarters of Siemens.
