News

Auchan will be a resident in shopping center LETO 

MOSCOW, RUSSIA - October 22, 2009 - Sistema-Hals (HALS), a leading diversified company in the Russian and CIS real estate market, and Apsys Group, one of the leading European companies engaged in development and management of retail real estate assets, announce leasing of 11,600 sq. m in shopping center LETO (Saint Petersburg) to Auchan Group. The sales area of Auchan hypermarket will be 9,000 sq. m.

LETO will gather an outstanding retail mix with a perfect balance of international, national and local brands. Along with Auchan the key anchor retailers will be Media Markt, Inditex Group, Monex Group, Russky Lyod and entertainment park Babylon.

The megamarket of hardware Media Markt will be located on 6,000 sq. m. Inditex Group will represent in LETO such brands as ZARA, Stradivarius, Bershka, Pull&Bear on ca. 4,000 sq. m. Monex Group will open stores under brands Mothercare, Claire's, Next, The Body Shop and Starbucks on ca. 1,300 sq. m. Russky Lyod will build an ice-ring operated all-year-round on the area of 1,000 sq. m. Family entertainment park Babylon will occupy 2,300 sq. m.

Among other tenants the following brands will be represented - New Yorker, Ann Christine, Lady&Gentleman, Reserved, House, Cropp Town, Promod, Chester, Coyoco, The Windsor Knot, Intimissimi, Motivi, Lush!, Tatuum, Dim, Calzedonia, Henderson, Collins, KFC, Agatha, Le Pain Quotidien, L'Etoile, Bely Veter, etc.

Apsys Rus has been the letting agent for the negotiations with the assistance of Jones Lang LaSalle.

Sistema-Hals and Apsys are building shopping center LETO with approximately 114,000 sq. m and GLA of about 80,000 sq. m. The outdoor parking is designed for 3,200 lots. LETO is ideally located in the actively growing and developing southern part of Saint Petersburg at the crossroad of Pulkovskoye shosse and the city circle highway (KAD). The Grand Opening of LETO is scheduled on 2010.

"Following the approved production program Sistema-Hals actively continues the development of LETO. As of today about 70% of GLA are secured by the arrangements with the tenants. Such percentage of occupancy obviously demonstrates that high quality projects with efficient concept, successful location and good mix of brands remain attractive in any situation." - commented Teimuraz Shengelia, Sistema-Hals Vice-President for Commercial real estate.

For further information please contact:

Anna Zavialova
Director
PR Department
Tel. +7 (495) 785-7764
zavialova@sistema-hals.ru

Ulyana Denga
Director
IR Department
Tel. +7 (495) 785-4214
Cell +7 (903) 2626 529
denga@sistema-hals.ru

Sistema-Hals ("the Company") is a leading diversified company in the Russian and CIS real estate market. The Company was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The Company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange and in the Russian Trading System Stock Exchange.

Starting operations in 1994, Sistema-Hals has successfully completed about 40 projects with a total area in the region of 340,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company, a hotel for the MaMaison chain (Orco Property Group), residential projects in Kuntsevo district.

Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The Company's strategy is focused on building Class A and B office space, mixed-use retail and office complexes, business-class residential buildings.

Apsys is a global retail real estate operator with a long term investment portfolio with the shopping centers that it develops. The core business of Apsys and its affiliates is the development, the letting and the management of shopping centers. The Apsys group has been created in 1996 by its President Maurice Bansay and Foncière Euris, a Paris listed group dedicated to retail (FMCG et sport) and real estate. Apsys has first developed its activities in Poland, where it is now the leader in the shopping center industry, and in France since 2002. The group has completed over 450,000 sq.m. retail development, among which the landmark Manufaktura retail and entertainment center in the Center of Lodz, Poland's second largest city, a 150,000 sq.m. development in an 19th century textile factory. Manufaktura has been awarded by many international prizes, such as the ULI Award for Excellence - World 2007 by the Urban Land Institute.

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The information in the press release may contain forward-looking statements regarding future events or the future financial performance of Sistema-Hals. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date thereof or to reflect the occurrence of unanticipated events.