Mirland Development Corporation has announced it is forming a joint venture with a local Russian company to develop up to three real estate projects in Moscow. On completion the developments will comprise over 200,000 m[sup]2[/sup] of mainly residential real estate.
Mirland Development Corporation has announced it is forming a joint venture with a local Russian company to develop up to three real estate projects in Moscow. On completion the developments will comprise over 200,000 m2 of mainly residential real estate.
Initially, the focus will be on the Sokolniki and Nemchinvoka projects. The Sokolniki Project will comprise the development of residential buildings with an aggregate area of 28,000 m2 on approximately 1.3 hectares of land, close to the third ring road in Moscow. The second project will involve the development of approximately 13 hectares of land and the construction of residential and commercial premises covering at least 175,000 m2 in an up-market area in the western part of Moscow.
Under the agreement Mirland will, subject to completion of due diligence, provide debt funding of up to $116.5 mln for these first two Moscow projects. The funding will be provided by Mirland subject to completion of various milestones and will be financed from its own resources. In return Mirland will receive a 51% equity interest in the joint venture and a share of the profits attributable to the joint venture of not less than 50%.