Joint Stock Company Open Investments (“JSC OPIN”) was established in September 2002 by Interros in order to consolidate its real estate assets and operations. It was the first Russian real estate developer to list its shares in Russia. Based in Moscow, the Group is focused on the development of the residential housing and the investment grade Class A office space.
In September 2004 the Company’s ordinary shares were listed on the B list of the RTS stock exchange prior to the offering of its shares (IPO). In November 2004, the Group successfully completed an IPO among a wide audience of international and Russian investors for a total of US$ 68.8 million. This step allowed the Group to become the first public real estate corporation in Russia market and gave it access to long-term capital to finance its commercial and residential projects. The Company’s shares are included into the RTS and RTS-2 index baskets.
In April 2006 the Company completed offering of additional shares for a total amount of approximately US$ 90 million. In October 2006 the Company completed the third additional issue of 4,875,488 ordinary shares raising approximately US$ 881 million. In May 2007 the Company completed a further new issue of 1,798,063 ordinary shares for approximately US$ 325 million. In October 2007 the Company completed the fifth additional issue of 2,038,930 ordinary shares raising approximately US$ 591 million. The Group’s market capitalization is approximately US$ 5.1 billion as at 16 June 2008.
The investment strategy of the Group is to diversify its project portfolio across the most attractive real estate market segments of Moscow and the surrounding areas, Central Russia and South of Russia, while maintaining the optimum balance between real estate development projects and income-generating properties. OPIN plans to continue to grow its “land bank” by purchasing sites in prime locations (typically close to attractive recreational areas such as waterways and woodlands) suitable for residential housing projects and other developments and along the most efficient transportation arteries.
Priority segments in the real estate market are as follows:
Class A office space;
Master-plan developments (development of quality residential housing within large-scale residential communities with key amenities on site - mini towns and resorts);
Middle-class residential real estate;
Retail centers and hotels.
OPIN may participate in other real estate segments such as warehousing and infrastructure projects if attractive opportunities arise. Besides, the Group continuously monitors real estate and legislation changes. Concentration of resources in each segment may be reconsidered due to change of attraction. The Group has also developed an attractive portfolio of new investment opportunities, including development projects in different regions of Russia.
According to the interim consolidated financial statements of JSC OPIN for the 6 months ended 30 June 2008, prepared in accordance with IFRS, the Group’s total assets grew 1.4 times (to approximately US$4.9 billion) compared with total assets as at 31 December 2007. Equity attributable to the shareholders of the parent company for the 6 months ended 30 June 2008 has grown by more than 1.3 times (to approximately US$3.7 billion) over the same period. Total revenues for the 6 months ended 30 June 2008 (of approximately US$ 151 million) are up 1.8 times on those for the 6 months ended 30 June 2007, whilst net profit attributable to shareholders of the parent company has increased by more than 2.4 times (to approximately US$ 90 million in the first half of 2008) compared with the first half of 2007.
Deloitte has been the auditor of the Group since 2002. Jones Lang LaSalle has conducted an independent appraisal of the majority of the Group’s assets.
