L & R’s project in Kievsky Shosse is the first time when a foreign investment fund deals with property construction in Russia directly.
Photo: Dmitry Kostyukov
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London & Region to Build Flats in Moscow
London & Regional Properties has become the first foreign investment fund to enter Russia’s property construction market. The Brits are planning to build 500,000 sq. meters of residence, retail and office buildings near the Moscow Ring Road. The company’s managing director earlier worked at the Basic Element holding and has experience in the Russian development market.
The property investment fund has started developing the concept for the residence block in Kievsky Shosse near the Moscow Ring Road, David Geovanis, managing director in London & Regional, told Kommersant. The total area of the project will come to 500,000 sq. meters of office, retail and business class residence buildings, under early estimates. Experts say that the Brits will have to put some $800 in the project.
London & Regional was set up in 1987. The company invests in property in the UK, Scandinavia and Russia. L & R’s total assets are estimated to be worth ˆ6 billion. The company has been on the Russian market since April 2006, having invested over ˆ500 in commercial property in this country.
Over its eight months on the Russian market, London & Regional has struck $350 million deals. $100 million of it have been invested in Moscow. The company bought the 19,500 sq. meter office building, Ducat Place II for $80,000 in July, and Sun Paradise Shopping Centre, measuring 12,000 sq. meters in Borovskoye Shosse, just outside Moscow, in September. The company is now planning a 43 hectare retail, residential and business park scheme on Kievsky Schosse near the Moscow Ring Road as well as other projects in Russian regions.
L & R’s project in Kievsky Shosse is the first time when a foreign investment fund deals with property construction in Russia. Earlier, foreign funds have been engaged only in the fee development in Russia.
London & Regional has a good chance to make success in Russia since the company’s David Geovanis worked as the managing director in Basic Element and was involved in construction projects.
Market participants expect that the project on Kievsky Shosse will bring 30-percent profits to its owners.
www.kommersant.com
All the Article in Russian as of Jan. 29, 2007
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