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. Last Updated: 07/27/2016

Sistema Unit's Value Rises 35%

Sistema-Hals, the property unit of billionaire Vladimir Yevtushenkov, said the value of its real estate assets rose 35 percent in the second half of 2006 because of growing demand for office space in Moscow.

Sistema-Hals' stakes in 88 real estate projects were worth $2.04 billion as of Jan. 1, 2007, compared with $1.51 billion six months earlier, the company said in a statement Monday. The valuation was conducted by Cushman & Wakefield Stiles & Riabokobylko.

The company's new valuation includes three new projects in Moscow totaling 82,000 square meters, according to a report Monday by Deutsche Bank's Russian unit, which organized Sistema-Hals' initial public offering. Deutsche Bank raised its price estimate on the shares to $13.16 from $12.89 after the new valuation.

Sistema-Hals raised more than $400 million at its share sale in November. The company's global depositary receipts in London added 4.4 percent to $11.80. The global depositary receipts have fallen 11 percent this year.

Sistema-Hals also said Monday that it planned to build a hotel and apartment complex in Sochi.

Sistema-Hals will buy 68 percent of Kamelia Health Spa, which holds a 49-year lease on 6.3 hectares of land in the Black Sea resort, the developer said without giving details of the transaction.

The hotel will have as many as 300 rooms and the "elite" apartment complex will have 125 units, Sistema said.