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. Last Updated: 07/27/2016

MirLand Swings Back to Profit

LONDON -- Property company MirLand Development reported a return to profit in the first half on Friday, as progress in its pipeline of projects gathered pace.

The company, which is listed on London's junior stock exchange AIM, generated post-tax profit of $59.5 million during the six months to end-June against a loss of $740,000 in the corresponding period last year.

The value of MirLand's real estate at the end of June was just over $1 billion, up 36 percent since end-September.

Chairman Nigel Wright said Russia's real estate prospects remained strong "with continuing growth forecast in all sectors," compared with several West European markets where growth in property values has tailed off sharply this year.

The company said it had invested $72.4 million of the $293 million net proceeds raised in its December initial public offering to develop its first shopping center in Yaroslavl and buy rights to a site in Moscow that could eventually be developed into a 48-story skyscraper.

It has also agreed to buy two Russian companies with office development projects totaling more than 13,000 square meters of space.

In December, MirLand raised $282 million via a placing of its shares to fund a boost in its portfolio and pay for the Moscow skyscraper.