LSR Group to build EUR 181m project in Moscow

Real estate developer LSR Group's subsidiary ZAO Mosstroirekonstruktsiya has entered into a contract to acquire plots of land totalling 1.8 hectares at Leningradskoye Shosse in Moscow for an undisclosed amount. The plots were valued by DTZ at EUR 68mln, LSR said in a statement. The company plans to build a multi-purpose business centre with a total area of 115,000 m² on the site, including 50,000 m² of offices and apartments and 14,000 m² of retail outlets. A parking lot for 1,200 cars is also to be constructed. The total estimated investment is over EUR 181mln. The construction is to start in 2010.

The future business centre will be located only 500 metres from the Water Stadium metro station, about 12 kilometres from central Moscow. 'Commercial property in the northern part of Moscow has high potential. Rapid development of retail and office space towards Leningradskoye Shosse ranks third after Moscow downtown and areas within 3rd Transportation Ring. A highly developed infrastructure and increasing transport accessibility make the area extremely promising for developing business complexes,' said Ivan Romanov, CEO of ZAO Mosstroirekonstruktsiya.

Listed on London's stock exchange last November, LSR Group is a Russian developer with offices in the Leningrad Oblast, in St Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people and posted revenues last year of EUR 904mln.