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Slide 1 - ADG group

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									Corporate presentation


September 2008
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
    Company snapshot

Who we are?
•   A highly diversified Real Estate Developer (from landsearch to property management)
•   A fully integrated company with strong project portfolio
•   A team of like-minded professionals



Our Approach
•   Effectively add value and maximize profits at every stage of the development process



Our Focus
•   Russian regional cities with population over 400,000 people
•   The best commercial land sites located downtown
•   Shopping centers over 40,000 sq. m of GLA
                 Company snapshot

• Leading developer of shopping centers              Overview of development portfolio
in the Russian regions focusing on cities with         Retail                                                         Start of
                                                                                                                      construction
                                                                                                                                       Start of
                                                                                                                                       operations
                                                                                                                                                    GLA, sq. m

population over 400,000 inhabitants                                     1 Astrakhan                                   Q2 2007      Q3 2009           38 158
                                                                        2 Bryansk                                     Q4 2008      Q2 2010           29 676
                                                                        3 Novosibirsk, Karl Marx                      Q2 2007      Q3 2009           27 185
                                                                        4 Novosibirsk, Kamenka                        Q1 2009      Q2 2011           91 389
• Total committed development portfolio                                 5 Lipetsk                                     Q2 2009      Q3 2011           56 611
                                                                        6 Cheboksary                                  Q1 2009      Q3 2010           26 120
comprises 415,000 sq. m of GLA of retail                                7 Orenburg                                    Q1 2009      Q3 2010           62 300
                                                                        8 Kemerovo                                    Q2 2009      Q4 2010           83 500
projects and 49,300 sq. m of GBA of non-retail                                                                        Start of     Start of   Gross area,
                                                       Non-retail                                                     construction operations sq. m
schemes                                                                 1 Kaliningrad, Ozero - hotel                  Q1 2009      Q2 2010           12 500
                                                                        2 Kaliningrad, Park Inn - hotel               Q4 2008      Q2 2010           21 500
                                                                          Moscow, Bryusov - elite
• Two projects under construction                                       3 residential
                                                                        4 Lipetsk - hotel
                                                                                                                      Q3 2009
                                                                                                                      Q2 2009
                                                                                                                                       Q4 2010
                                                                                                                                       Q3 2011
                                                                                                                                                            4 500
                                                                                                                                                           10 800


• Ten projects in planning stages                                                           Geographical overview
                                                 Developed projects
                                                 Committed pipeline

• Successfully developed and sold a 39,000 sq.   Potential pipeline
                                                     Kaliningrad
m (GBA) mixed-use center in Kaliningrad
                                                                     Moscow
• Advanced negotiations on the acquisition of         Bryansk
                                                                   Lipetsk         Cheboksary
seven additional projects                                                                     Perm
                                                                                        Naberezhnie Chelny
                                                                                Toliatti         Ekaterinburg
                                                                                                Chelyabinsk
                                                                                                                          Tomsk
                                                                                 Orenburg
                                                                        Astrakhan
                                                                                                                Novosibirsk
                                                                                                                              Kemerovo


                                                                                                                        Novokuznetsk
               History
                                                                                             Disposal of mixed- use complex
                                                                                              Kaliningrad Plaza
                                                                                             Acquisition of land plots in
                                                                                              Cheboksary, Volgograd, Lipetsk,
                                                                                              Nizhniy Novgorod, Kemerovo
                                                                                             Starting the construction of shopping
                                                                                              malls in Astrakhan, Bryansk,
                                                                                              Novosibirsk
                                           Acquisition of land plot on                      Negotiating the land plots located in
                                            Kamenskaya Highway in                             Chelyabinsk, Ekaterinburg,
       Foundation of                        Novosibirsk                                       Naberezhnie Chelny, Novokuznetsk,
                                           Starting the financing of                         Perm, Toliatti, Tomsk, and others
       the ADG                              Kaliningrad Plaza project by OAO                 Frank Lafeuille joined the Company as
                                            Sberbank                                          Vice president for Development
       Group


2003          2004                2005                    2006                  2007                   2008

                      Construction of mixed-use center              Acquisition of land plots
                                                                                                                   Disposal of land plots
                       Kaliningrad Plaza started                      located in Novosibirsk,
                                                                                                                    in Volgograd and
                                                                      Astrakhan, Kaliningrad,
                                                                                                                    Nizhniy Novgorod
                                                                      Bryansk
                                                                                                                   ADG current pipeline
                                                                     Opening of Kaliningrad
                                                                                                                    comprises over
                                                                      Plaza
                                                                                                                    900,000 sq. m
                                                                                                                   ADG potential pipeline
                                                                                                                    accounts for ca. 1 mn
                                                                                                                    sq. m
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
 Strategy overview
Mission
Our mission is to have a positive impact on the development of major cities in the regions of
Russia by improving city infrastructure, increasing business opportunities and improving the
overall social environment.

Strategy
Be the preferred real estate partner for international leading retailers to implement their expansion
program in the Russian market continuously increasing volume of projects under management and
maximizing value of stakeholders.

Implementation
 Symbiosis of international and local expertise
 Strong team of professionals in each stage of development process
 Ongoing interaction with leading retailers

Key factors
 Sizable (400k +) regional cities preferably with insufficient quality offer of shopping centers
 High quality densely populated locations with large catchment areas
 State of the art designs
                            Symbiosis of international and local expertise

                                                                                                                    Expert in project management, construction management and
                            MBA (Higher School of Business, Moscow State                                            leasing of shopping centers and multifunctional complexes.
                            University), vice-president of Alfabank during 2002-2004.                               Over 20 years of experience. He headed the Real Estate
                            Responsibilities include the development and control of the                             Department for Auchan in Italy. After that joined Simon and
                            company's business strategy.                                                            became CEO in Turkey (where accompanied the development
                                                                                                                    of Carrefour) and after 3 years moved back to France to lead
                                                                                                                    Eastern Europe Region, mostly Poland, but also doing
                                                                                                                    selected projects in Spain. Frank took the leading role on the
                                                                                           Frank Lafeuille          development of the Arcadia project in Warsaw. In ADG he is
Mikhail Pechersky
                                                                                           Executive Vice           responsible for project conception, controlling project works,
Chairman                                                                                   President,               and more widely for leading projects strategies for the
                                                                                           Development              company.

                            Executive MBA (Stockholm School of Economics). Worked                                   MBA at Hofstra University NY, USA. With his impressive
                            for about eight years for Hansabanka in Riga and Tallin,                                financial background Maris was heading Corporate
                            taking various executive positions. From 2004 to 2006                                   Banking and Capital Market at AS Hansabank (Riga)
                            headed Hansabanka’s Russian operations and was CEO                                      during 1999 – 2006. Chairman at ОАО Swedbank in
                            of SwedBank in Russia. Since 2006 is a partner and                                      Russia and Board member of Hansabank Group during
                            shareholder of various real estate related consulting                                   2006-2008. At ADG Maris is responsible for financial
                            businesses. At ADG Druvis is responsible for the                                        planning and control of management company and
                            Company’s Business Strategy development.                                                projects, funding of projects, investor relationships, support
                                                                                           Maris Manchinskins       and development of IT infrastructure, HR management and
Druvis Murmanis                                                                            Executive Vice           legal support of operations.
Executive Vice President,                                                                  President,
Business Development                                                                       Finance and Operations
                                                                                                                    Reputed French architect known for the projects of large
                            Certified lawyer, expert in deal structuring in real estate                             shopping centers in Spain, France, Poland and Russia. In
                            business. Graduated from Moscow State Law Academy                                       the team of architects in BEG company received ICSC
                            and Turku International University (Finland). Gregory is
                                                                                                                    Awards prize for Arcadia shopping center project in
                            responsible for search, analysis and acquisition of the land                            Poland. Manages the team of architects, is responsible for
                            plots for future construction. Manages the Expansion and
                                                                                                                    architectural and design issues in the company.
                            Business Managers divisions as well as the contacts with
                            investors and partners of ADG Group.
Gregory Pechersky                                                                          Guilliaume Sadoux
Vice President,                                                                            Design Director
Business Development
& Expansion
                                           Experienced management with significant accumulated real estate expertise
                   Operational structure of the Group
                                            CEO



Business                                                   Finance &
                                        Development                          Internal Audit
Development                                                Operations



27 people                               47 people          28 people         4 people



                                        Concept and        Finance
Analytical           Business           Architecture
Department – 5       Development &                         Department – 14
                                        Department – 7     people
people               Expansion          people

Marketing            Expansion          Engineering and    IT department –
Department – 4       Department – 4     Technical          3 people
people               people             Support
                                        Department – 5
                                        people             Human
Business             Business                              Resources
development          Development                           Department – 4
                                        Construction
Department,          Department,                           people
                                        Department - 11
Hotels -2 people     Shopping
                                        people
                     centers – 8                           Legal
                     people
                                        Leasing            Department – 5
                                        Department – 3     people
                     Business           people
                     development                           Corporate
                     Department,                           Finance – 1
                     Outlet centers –                      person
                     2 people           Property
                                        Management &
                                        Office
                                        administration –
                                        20 people
Divisions functions
Business Development Division:
               •        Market research & investment analysis
               •        Marketing support of the Company’s activities
               •        Business management of non-retail projects

Business Development & Expansion Division:
                   •    Development and implementation of the Company’s expansion strategy
                   •    Business management of retail projects


Development Division:
              •        Managing and controlling the full development cycle of the projects: architecture and design, engineering,
                       construction, leasing
              •        Launching and coordinating property management of the projects
              •        Office administration


Finance and operations:
               •       Financial planning and control of management company and projects; funding & investor relations
               •       Support and development of IT infrastructure
               •       HR management
               •       Legal support of operations

 Internal Audit:
               •       Accounting & bookkeeping
               •       Tax management
               •       Audit
  PROJECT VALUE   Project life cycle
                                                                                  Under control of Business Project Manager


                                                                         value                   value                       value
                                         value                                                                                                        value                     value
                                                                                                                                     Construction
                     Land & property              Concept Design                  Architecture &              Financing                                   Marketing & leasing      Putting into
ACTIONS:              Acquisition >                Development >                 Engineering >              Structuring >
                                                                                                                                     Management
                                                                                                                                                            >
                                                                                                                                           >                                       Operation >

                    > Market research                                                                                           > Construction           Active PR and            > Grand
                                                 > Concept design           > Architectural &            Organizing debt
                    > Negotiations               development                                                                    > Getting approvals      marketing                 opening
                                                                            engineering work             financing
                    > Due diligence (legal,      > Equity structuring                                                           > Start of fit-out       Signing shopping         > Refinancing
                    financial, construction)                             > Anchors - agreements Structure the deal
                                                 > Anchors – BTS signing signing                                                                         gallery tenants           > Property
                    > Deal structuring                                                                                                                                             management
                                                 >Getting approvals of      > General contractor                                                         Start of fit-out
                    > Acquisition                “Eskiz project”
                                                                            tender process


                                                                                                                                                              • All tenants
                                                                        •        Construction permit                                                            signed
                   • Land use rights                                                                     • Optimal             • Ground work                                     • Project launched
ADDED                                          • Approval of “Eskiz”    •        Architectural plans       leverage              completion                   • Deposits and
                   • Zoning                                                      approved                                                                                        • Refinancing
VALUE:                                         • BTS with anchors signed                                                       • Commission act signed          advance            agreement signed
                                                                        •        Anchors signed          • Financial risks                                      payments
                                                                                                           minimization        • Tenants agreements             received         • Ownership rights
                                                                        •        Debt financing                                  signed
                                                                                                                                                              • Project
                                                                                                                                                                                   received
                                                                                 agreement                                                                      announced and
DEPARTMENTS                                                                                                                                                     recognized on
                                                                                                                                                                the market
INVOLVED:

EXPANSION

RESEARCH

DESIGN

QUALITY CONTROL

CONSTRUCTION

LEASING

MARKETING

PROPERTY MGT

LEGAL

FINANCE                                                                                                                                                                                  TIME
                           Development process
                          Full-cycle development process starts from in-depth market research, deal structuring and building a project
                          team under management of a Business Project Manager:


    Research and evaluation                                             Acquisition                                      Business Development

         Research Department                                     Expansion Department                                    Business Development
                                                                                                                              Department
• Research team of 3 specialists in market             • The Head of Expansion Department, Vladimir             • The department is headed by Gregory
  research and f inancial appraisal is headed by         Zotov, has acquired signif icant experience in           Pechersky, a leading real estate lawyer by
  Polina Zhilkina, who was previously running            working in the largest Russian M&A company.              education and experience and a key strategist
  retail consulting team at Jones Lang LaSalle,          His wide scope of contacts in administrative             behind the Company’s proactive expansion
  Moscow.                                                and business spheres is a strong asset f or the          across Russia. He has the leadership over the
                                                         company’s expansion and helps to carry out the           f ull-cycle process f rom f easibility analysis and
• Research starts f rom the study of a region            most ef f ective land search across Russia.              site acquisition stage to the business project
  including the detailed investigation of the city’s                                                              management at development stages. Gregory
  demographics & economy, real estate market           • The main role of expansion department is to              is also the primary contact f or investors and the
  today and in perspective and priority areas to         search f or the land sites, build the contacts on        Group’s business partners.
  search f or the land sites.                            the local level, develop the optimal scheme of
                                                         the deal and f ollow it up till the start of concept   • The department under Gregory’s management
• At this stage the Company’s using the internal         development stage.                                       consists of Business Project Managers who’s
  resources as well as outsourcing specif ic tasks                                                                main f unctions are:
  to prof essional consultants teams.                  • In more details the f unctions of Expansion                     • Develop and control business plan of
                                                         department are:                                                   the Project;
• Research department is also responsible f or                 • Land plot search                                        • Manage resources and Project’s
  investment analysis of the projects starting f rom           • Governmental contacts                                     teamwork;
  the “search and acquisition” stage till the f inal           • Negotiations with land owners                           • Minimize and manage Project’s risks;
  investments are made in the property.                        • Deal structuring                                        • Control budget and time schedule;
                                                               • Compiling documentation on the land                     • Source and develop opportunities f or
                                                                 site                                                      receiving authorization
                          Development process
                         Full-cycle development process is executed by Development Department, headed by Frank Lafeuille, and
                         consists of the following key stages and processes:

                                                       Technical studies and control
      Concept development                                                                                        Construction management
                                                             of construction
         Design Department                                 Construction Quality Control                            Construction Department
                                                                  Department

• Design Department is headed by Guilliame            • Construction Quality Control Department is         • Department under management of Mikhail
  Sadoux, an internationally recognized architect,      headed by Vladimir Gazetin, who has                  Surov consists of project managers, each of
  f ormer member of BEG and Simon Property              signif icant experience working with the largest     which is responsible f or 1 or 2 projects.
  Group and Ivanhoe Cambridge.                          Russian retail chains (Mosmart and
                                                        Perekrestok).                                      • Central of f ice employees manage and control
• Concept and design development is undertaken                                                               the work of the General Contractor via:
  either by international architects f or f lagship   • Company engages either international                   • local regional of f ices
  projects or local architects.                         engineering companies f or overall engineering         • Outsourced construction management
                                                        concept development and then outsourcers to              company or
• Among international Architects the Group works        local engineering companies f or concept               • “Technical customer” service controls
  with f amous Altoon & Porter (Kamenka) and 5+         realization.                                             tender process, project works and working
  Design (Lipetsk).                                                                                              documentation, ensures getting approvals
                                                      • Group’s Construction Quality Control                     and permits f rom administration, doing
• Company’s Design Department is overseeing             Department is responsible f or:                          technical supervisory.
  and coordinating the work of outsourced                 • Collecting and approving package of
  architects.                                               technical documentation                        • Construction department is responsible f or
                                                          • Selection and contracting general                scheduling of construction and budgeting of the
• Concept development process is undertaken in              contractor                                       project expenses.
  close cooperation with Expansion and                    • Coordinating and controlling work of
  construction departments to account f or all              outsourced engineering f irms                  • Work of the construction department is f inished
  technical details of the site and requirements of                                                          when f inal Acceptance Act by city authorities is
  potential tenants at the concept stage.                                                                    being signed and the SEC is commissioned to
                                                                                                             the city administration.
                        Development process
                       Marketing process is also part of the process executed by Development Department, and consists of the
                       following key stages and stages:

 Marketing and negotiations
                                                                    Leasing                                      Property management
    with anchor tenants
        Marketing department                                 Leasing Department                           Central Management Department

• Marketing process starts approximately 1.5      • Company negotiates with potential anchors in          • Property management department is now
  years before contemplated opening.                order to find out their potential needs and             successfully managing Kaliningrad Plaza
                                                    requirements in regard to space within the              for London & Regional Properties.
• Marketing starts with the preleasing stage        center and consider those at the design and
  when the major conceptual issues are              construction process.                                 • Central office in Moscow, consisting of 3-4
  shared with potential anchor tenants. Their                                                               technical, marketing and operation
  feedback is important in order to have the      • At the more advanced stage when the concept             specialists .
  overall view of the future tenant mix and         is almost done the Leasing Agent is involved.
  make the concept plans meet their                                                                       • Regional offices in places where the
  requirements.                                   • Anchors are signed at the beginning of                  properties under management are located.
                                                    construction stage in order to avoid further
• At the more advanced stage PR and                 changes in technical requirement.                     • Department is responsible for:
  marketing events start to promote the project                                                               • Technical surveillance
  among potential tenants.                        • The Leasing Agent is defending the Company’s              • Operational expenses control
                                                    interest in front of tenants order to get the right       • Tenants relationships
• Company’s using various ways to market the        tenant mix, ensure right terms of lease
  shopping center – via mass media, local and       agreements, optimal rents and other conditions.
  international exhibitions and conferences,
  Agent’s services, etc.                          • The Leasing Agent fully supports the project till
                                                    the Grand Opening and further during the first
                                                    year of operation.
Proven local expertise: Kaliningrad Plaza
                Key project highlights

                 The largest modern multif unctional center in Kaliningrad region
                 Architectural concept was done by Murray O'Laoire Architects (known f or
                  Domodedovo Airport reconstruction project and Atrium shopping center in
                  Moscow)
                 Attracts 10,000 – 15,000 visitors daily


                Key operational metrics

                 Construction duration: September 2005 – November 2006
                 GBA: 39,000 sq. m
                 GLA: 17,000 sq. m
                 Internal parking: 400 slots; surf ace parking: 150 slots
                 Total investments in construction: $35mln
                 Sold to London & Regional Properties in November 2007 f or approximately US
                  $67m
                 Total projected NOI at the moment of sale US$ 6.7 m
                 Yield on sale: 10%

                Tenants mix

                 Pre-lease started in September 2005. 100% pre-leased by the time of opening
                 Commercial concept and brokerage by Jones Lang LaSalle
                 Key tenants:




                                                                 15
                                      Location: sizeable regional cities with insufficient
                                                 quality offer of retail space

  Bryansk:                                                                                  Cheboksary:
  Population: 415,000 people                                                                Population: 440,000 people
  Retail stock per 1,000 inhabitants: 26 sq. m                                              Retail stock per 1,000 inhabitants: 153 sq. m




  Lipetsk:                                                        Kaliningrad                                                                              Kemerovo:
  Population: 500,000 people                                                                                                                               Population: 520,000 people
  Retail stock per 1,000 inhabitants: 124 sq. m                                                                                                            Retail stock per 1,000 inhabitants: 213 sq. m
                                                                                  Moscow
                                                                   Bryansk
                                                                                Lipetsk         Cheboksary
                                                                                                           Perm
                                                                                                     Naberezhnie Chelny
                                                                                             Toliatti         Ekaterinburg
                                                                                                             Chelyabinsk
                                                                                                                                       Tomsk
                                                                                              Orenburg
                                                                                     Astrakhan
                                                                                                                             Novosibirsk
                                                                                                                                           Kemerovo
  Astrakhan:
  Population: 500,000 people                                                                                                         Novokuznetsk
  Retail stock per 1,000 inhabitants: 114 sq. m
                                                                                                                                                       Further potential pipeline

                                                                                                                                                      Project                Population, Retail stock per
                                                                                                                                                                             '000 people 1,000 people, sq.m
                                                                                                                                                      Chelyabinsk               1 090             232
                                                                                                                                                      Ekaterinburg              1 315             300
  Orenburg:                                                              Novosibirsk:
                                                                                                                                                      Naberezhnye Chelny         506              180
  Population: 530,000 people                                             Population: 1,400,000 people
  Retail stock per 1,000 inhabitants: 104 sq. m                          Retail stock per 1,000 inhabitants: 209 sq. m                                Novokuznetsk               560              121
                                                                                                                                                      Perm                       990              100
                                                                                                                                                      Toliatti                   705              321
                                                                                                                                                      Tomsk                      493               0
* Retail stock counts leasable space of modern shopping centers
                         High quality inner city locations
ADG has developed a standardized approach to site selection                           Summary of analysis of cities currently in the pipeline


 City market analysis
 •   Statistical inf ormation: population, distance f rom Moscow, average
     disposable income, GRP per capita, retail turnover, existing and f uture
     retail stock per capita, market size f or prof essional retail
 •   City location within Russia, closest large cities with developed logistics
     inf rastructure
 •   Main trends of residential and retail space markets in the reviewed
     region




                                                                                                - existing shopping centers stock   - undersupply of shopping centers stock

 Site analysis
 •   Analysis of site f eatures: size, status, transport availability, restrictions   Summary of analysis of cities of future potential pipeline
 •   Catchment areas: primary (within 5 min), secondary (within 10 min),
     tertiary (within 15 min)




 Competition analysis
 •   Competing projects (existing, under development and planned)
 •   Competition impact on the Project’s perf ormance


Following the commercial assessment, ADG undertakes legal, investment and
technical assessments bef ore taking the f inal decision on whether to proceed
                                                                                                - existing shopping centers stock    - undersupply of shopping centers stock
with an acquisition.
          State of the art designs
                                               Novosibirsk - Kapital




                       Novosibirsk - Kamenka
Astrakhan - Yarmarka




                          Bryansk - Most



      Lipetsk                                       Orenburg



                             Cheboksary
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
                                      Yarmarka – Astrakhan, Vokzalnaya Square
                                               Key project highlights

                                                     Key highlights of the project




                                                      First development of such size and quality in the city.
                                                      Prime location in the very city center near train station and at
                                                       intersection of key roads with highest pedestrian flow.
                                                      The project is already generating large demand from international
                                                       and local retailers. More than 80% of firm leasing agreements have
                                                       already been signed, among which are: O’Key hypermarket,
                                                       M.Video, Mango, Kinomaks, Sportmaster, Detsky Mir and Mango.
                                                      Brokerage is being done with the involvement of Jones Lang
                                                       LaSalle.
Key operational metrics
GBA, sq. m                                 81,706
                                                     Confirmed key tenants
GLA, sq. m                                 38,323

Structured / outside parking, spots       515 / 70
Construction start date                   Q2 2007
Construction end date                     Q3 2009
Lease agreements signed                      50%
BTS signed                                   33%
Remaining                                    17%
                                      Kapital - Novosibirsk, Karl Marks square
                                                Key project highlights

                                                    Key highlights of the project

                                                     The shopping and entertainment center is located in Leninsky district,
                                                      on Karl Marks Square which is the main traffic junction of this part of the
                                                      city.
                                                     Metro station “Ploshad Marksa” nearby the site provides perfect
                                                      accessibility of the shopping center.
                                                     Intensive vehicle and pedestrian traffic will provide the constant flow of
                                                      customers to the shopping center.
                                                     The center has been designed by a Polish company “4105.eu”.
                                                     Brokerage is being done with the involvement of Jones Lang LaSalle.

Key operational metrics
GBA, sq. m                                52,600
                                                    Confirmed key tenants
GLA, sq. m                                27,200

Structured / outside parking, spots     300 / 140
Construction start date                 Q2 2007
Construction end date                   Q3 2009
Lease agreements signed                     64%
BTS signed                                  17%
Remaining                                   19%
                                      Kamenka - Novosibirsk, Kamenskaya highway
                                                 Key project highlights

                                                        Key highlights of the project


                                                         The complex is being built on the right bank of the Ob River, at the entrance to
                                                          the central part of Novosibirsk from its southern districts.
                                                         The SEC is located in the intersection of Kirova street and Kamenskaya
                                                          highway, which are the main city highways, leading directly to the city center.
                                                         Location enjoys good visibility from all main adjacent streets.
                                                         Transportation infrastructure surrounding the center is very good, providing
                                                          easy access to the center from any of the highways surrounding it.
                                                         The center is located close to Oktyabrskaya metro station and is planned to
                                                          have direct entrance from the metro.
                                                         Auchan and Leroy Merlin to act as key anchors – will acquire over 38,000 sq.
Key operational metrics
                                                          m.

GBA, sq. m                                   205,100     The center will become the largest mall in the city. The unique offer of tenants
                                                          and downtown location will be able to supply stable customers flow.
GLA, sq. m                                    91,400
                                                        Confirmed key tenants
Structured / outside parking, spots        1939 / 600
Construction start date                      Q2 2009
Construction end date                     Q2-Q3 2011
Lease agreements signed                             -
BTS signed                                      50%
Remaining                                       50%
                                       Lipetsk, Nedelina / Souznaya str.
                                            Key project highlights

                                                    Key highlights of the project

                                                     The city is surrounded by a number of large production factories: NLMK
                                                      metallurgical plant, Stinol plant, Lebedyansky juice plant.
                                                     The project is located in the square where main city open market has
                                                      historically been and is currently located.
                                                     The concept of a project combines retail and hotel functions.
                                                     The concept of an open shopping mall is unique for the Russia in general and
                                                      particularly Lipetsk. The 3-4* hotel will be operated by a large international
                                                      hotel chain.
                                                     The project is currently at the stage of concept development and negotiations
                                                      with anchor tenants.




Key operational metrics
GBA of SC, sq. m                         139,600

GLA of SC, sq. m                          56,600

Hotel, sq. m                              10,800
Structured / outside parking, spots      1359 / -
Construction start date                  Q2 2009
Construction end date                 Q2-Q3 2011
                                                 Bryansk, Kalinina street
                                                  Key project highlights

                                                  Key highlights of the project


                                                  The shopping mall is being built in the traditional recreational
                                                   zone, at the intersection of Kalinina and Krasnoarmeyskaya
                                                   streets, in close proximity to business and administrative
                                                   center of the city.

                                                  The project is orientated for a primary and secondary
                                                   catchment zone (more like local rather than super-regional).


Key operational metrics
GBA, sq. m                             40,500

GLA, sq. m                             29,500

Structured / outside parking, spots    0 / 500
                                                  Confirmed key tenants
Construction start date               Q1 2009
Construction end date                 Q2 2010
Lease agreements signed                  24%
BTS signed                               11%
Remaining                                65%
                                         Cheboksary, 9th Pyatiletki prospekt
                                              Key project highlights

                                                     Key highlights of the project


                                                     Neighborhood concept to attract customers from densely populated residential
                                                      catchment area.
                                                     Development enjoys low level of competition.
                                                     Good mix of fashion retailers and service shops of high demand in immediate
                                                      neighborhood.
                                                     Located in the intersection of two major transportation routes leading to
                                                      residential parts of the city provide great public transport access to the SEC.
                                                     The Company is now in contact with supermarket, cinema and electronics
                                                      store operators as potential tenants.




Key operational metrics
GBA, sq. m                                50,400

GLA, sq. m                                26,500

Structured / outside parking, spots     258 / 165
Construction start date                  Q1 2009
Construction end date                 Q1-Q2 2010
                                           Orenburg, Tereshkovoy str.
                                             Key project highlights

                                                  Key highlights of the project


                                                   Due to the fact that Orenburg’s potential has been long
                                                    underestimated by developers, the city very much lacks quality
                                                    retail space.
                                                   The site is located in the most densely populated residential area in
                                                    the city, on the major street with highest traffic flows.
                                                   Good rectangular shape of the site (8ha) facing the street provides
                                                    perfect visibility and access.
                                                   Auchan and Carrefour as well as MediaMarkt and Zara confirmed
                                                    their interest for this project.




Key operational metrics
GBA, sq. m                             121,500

GLA, sq. m                              62,300

Structured / outside parking, spots   936 / 356
Construction start date               Q1 2009
Construction end date                 Q3 2010
                              Kemerovo, Tereshkovoy str.
                                Key project highlights

                                     Key highlights of the project

                                     The project is located in the close neighborhood of densely
                                      populated residential areas which continue to grow in size due to the
                                      massive new construction.
                                     The company is redeveloping the existing building thus significantly
                                      decreasing construction cost. Formerly the building was a textile
                                      factory.
                                     The very big site allows the Company to build a shopping center in 1
                                      floor (with mezzanine) that will be of high demand among tenants.
                                     The Company is now negotiating preliminary anchor lease
                                      agreements with DIY store operator, electronics store and cinema.


Key operational metrics
GBA, sq. m                115,000

GLA, sq. m                 83,500

Parking, spots              2,500
Construction start date   Q1 2009
Construction end date     Q3 2010
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
  Acquisitions in process
Naberezhnye Chelny:
     center of the city, near City Hall (20 ha)

Perm:
     major city thouroghfare, 2 km from the city center, (5,9 ha)

Novokuznetsk:
     on the way to the most densely populated residential area, (9,5 ha)

Toliatti:
     in the center of the most densely populated district, at the intersection of major roads (8 ha)

Tomsk:
     on the major city thoroughfare in immediate neighbourhood of residential area (4,3 ha)

Chelyabinsk:
     on the way to the newly constructed residential area with further potential to grow in population (7 ha)

Izhevsk:
     in the very city center, in the quarter of main pedestrian and traffic streets (3,3 ha)

Irkutsk:
     on the major highway in close vicinity to residential areas (10 ha)
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
 Awards

Kaliningrad Plaza took “Best Mixed-Use Complex – 2007” at Commercial Real Estate
Awards


ADG Group was awarded “Best Company of the Year 2007” for Regional
Infrastructure Development


ADG Group is in top-ten of the most powerful developers in Russia – “White
Business “ magazine


ADG Group awarded at Europaproperty.com for “Development of Russian Regions
and CIS”


Kamenka shopping center project won a prize at “Cutting Edge Project 2008” by
“MALL”, Russia
    Contents


   Company snapshot
   Vision, mission, strategy
   Project pipeline
   Acquisitions in process
   Awards
   Partners
Partners
 ADG has unparalleled network of relationships with strong
              international retail operators

								
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