To the Shareholders of
Investment Portfolio and Leasing Update
During the month of June, we continued to implement our strategy of shifting MGG’s asset mix away from smaller properties that cost more to maintain and manage, towards larger institutional-quality assets that are easier to scale, as we continue to build MGG into Mongolia’s leading commercial real estate concern. During June, we disposed of 6 properties for a total of approximately CAD
During the past few months, MGG has continued to maintain a stable level of occupancy along with increased revenues on new leases. Here are some highlights of our recently signed leases.
-During 2013, we began renovations on one of our store-fronts with a view to modernize it and increase its size, to increase future earnings potential. We have completed all work on that property and in June leased it to a well-respected tenant at market rates.
-We renewed a lease on
-The medical tenant mentioned in the press release on July 3rd, has now fully moved into the newly renovated facility and begun paying rent at market rates, leading to zero vacancy in the newly renovated facility.
Medical Facility Video
In keeping with our precedent from prior major renovations, we have created a video to document the progress of our renovation of the medical facility mentioned above. You can watch it at the following link https://www.youtube.com/watch?v=MAWiuDAvu6I&feature=youtu.be
Mongolian Economic Update
During the first quarter of 2014, Mongolia’s GDP grew 7.4% in real terms
Since our previous update to you:
We look forward to updating you again on our progress and new developments in the Mongolian economy next month.
*The core commercial property portfolio is defined as those commercial assets that are held for long term investment and excludes certain development assets which produce minimal rental revenues, certain assets that are actively being marketed and all residential properties. Two properties included in the calculation are accounted for as PP&E assets in the Company’s financial statements as filed with SEDAR.
**Billed revenue represents the revenue billed to tenants, net of VAT. It does not take into account bad debt expense, late payment penalties, interest income or management fee revenue. Revenue numbers assume that Mandal Daatgal ‘s rental revenue was attributed to MGG during 2013, as opposed to having it removed on consolidation, for ease of comparisons.
For further details on the foregoing document, please refer to the Corporation's filing on SEDAR.
For more information on
MGG undertakes its own property acquisitions, develops brownfield land assets and repositions outdated properties, relying on in-house services for all facets of both the investment portfolio and development side of the business. In addition, MGG acts as a full-service third party provider for institutional clients and tailors transactions covering acquisition-to-suit, build-to-suit, as well as refurbish-to-suit, for property owners and major tenants.
Forward-looking Information Cautionary Statement
Information and statements contained in this Letter to Shareholders that are not historical facts are “forward-looking information” within the meaning of applicable Canadian securities legislation and involve risks and uncertainties.
Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. MGG cautions the reader that such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking information.
Such risks and uncertainties include, but are not limited to: risks associated with investment in and redevelopment of real property in
Additional risks and uncertainties not presently known to MGG or that MGG currently believes to be less significant may also adversely affect MGG. Forward-looking information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes. MGG does not undertake any obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except to the extent legally required.
The TSXV has not reviewed and does not accept responsibility for the adequacy or accuracy of this Letter to Shareholders.
To view this press release as a PDF file, click onto the following link:
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