Cushman & Wakefield values Samolet Group assets at over RUB 300 billion
Samolet Group (MOEX: SMLT), the leading developer in the Moscow region and the leading developer of large-scale mixed-use projects, has published its second independent valuation report by Cushman & Wakefield in accordance with International Valuation Standards (IVS) and the professional standards of the UK’s Royal Institution of Chartered Surveyors (RICS).
The assessment values the Group’s assets at RUB 307.5 billion as of December 31, 2020 (RUB 201 billion as of June 30, 2020), including land bank, technology start-ups, brand and other constituents. The land bank and brand were the largest contributors to the increase: Samolet Group's brand was valued at RUB 16.8 billion (up from RUB 9 billion at the previous valuation date), while the land bank stood at 20 million sqm (up 30% on the previous valution) and was valued at RUB 260.5 billion, an increase of 47%.
Anton Elistratov, CEO of Samolet Group, commented:
“Public developers have many different reports and metrics that investors and analysts follow. To me, the independent valuation report is probably the most important, as unlike our IFRS financial results disclosures it allows people to gain an understanding of the future, and specifically the Company’s immediate and strategic prospects.
“With this in mind, I would note three key highlights of this new report. Firstly, the largest land bank in the entire industry has been a key asset and will contribute to future profits from development projects. Secondly, the valuation of Samolet Group’s assets has increased by 50% in just six months. This gives an idea of the speed at which we plan to grow in the short term. Thirdly, the report shows how the structure of our assets is beginning to change – in addition to development assets, we are seeing the emergence of new assets and the creation of new areas of business development and profit generation including the management company and service ecosystem, the Samolet Group brand, technology start-ups, commercial clusters and others. We will continue to announce these this year and consider this to be a high growth potential area in our strategy”.