Mirax Group Corporation has announced it is to reduce Tower East of the Federation business center in Moscow from 94 to 64 floors. The original plan for the Federation Tower envisaged it becoming the tallest tower in Europe.
Mirax Group Corporation has announced it is to reduce Tower East of the Federation business center in Moscow from 94 to 64 floors. The original plan for the Federation Tower envisaged it becoming the tallest tower in Europe.
'We are thankful to government authority representatives for the help they have extended to the corporation over the recent years. However, in the present economic conditions, implementation of such technologically complex and significant projects as the construction of the tallest building in Europe is unprofitable in Russia,' Mirax chairman Sergey Polonsky said.
'The priority for us today is completion of the construction of all our projects besides the Federation Tower, and fulfilment of our obligations to our clients and investors', he added.
The decision to reduce the number of floors was taken due to high interest rates for bank lending.
The company added that it would be ready to reconsider the decision to reduce the number of floors if it becomes possible to a obtain a credit at an interest rate of 12% in the next 2-3 months.
