Mirland Development swung to a loss of $104 mln (EUR 76 mln) in 2008 from a profit of $70 mln a year earlier, mainly due to currency devaluation and a negative fair value adjustment to its property portfolio. The Russian property developer said Net Asset Value fell 60% in 2008 to $487 mln, from $1.24 bn in 2007.
Mirland Development swung to a loss of $104 mln (EUR 76 mln) in 2008 from a profit of $70 mln a year earlier, mainly due to currency devaluation and a negative fair value adjustment to its property portfolio. The Russian property developer said Net Asset Value fell 60% in 2008 to $487 mln, from $1.24 bn in 2007.
'In view of the uncertain and challenging market conditions, Mirland will continue to monitor and adjust its strategy according to market and economic conditions,' said chairman Nigel Wright.
Wright said Mirland has conducted a thorough review of its business plan and in the future will focus on 'bringing to fruition those projects currently under construction and delaying commencement of certain pipeline projects until such a time that the outlook in the funding markets becomes clearer'.
Mirland said it has made efforts to build strong relationships with national and international banks, in particular the European Bank for Reconstruction and Development (EBRD) which is currently providing financing for its Triumph Mall project in Saratov, and Gazprom bank, which financed the construction of its Vernissage Mall in Yaroslavl.
The company has decided to slash a dividend announced in 2008 which the company qualified now as 'inappropriate' as a result of the net loss during the year.
