GIC Real Estate, the property investment arm of the Government of Singapore Investment Corporation, has entered a partnership agreement with London-listed developer PIK Group to develop a large urban area in the city of Mytischi, located northeast of Moscow. The agreement stipulates that GIC Real Estate will pay approximately USD 233 mln (EUR 161 mln) for a 25% stake in the project.
GIC Real Estate, the property investment arm of the Government of Singapore Investment Corporation, has entered a partnership agreement with London-listed developer PIK Group to develop a large urban area in the city of Mytischi, located northeast of Moscow. The agreement stipulates that GIC Real Estate will pay approximately USD 233 mln (EUR 161 mln) for a 25% stake in the project.
Consisting of a site of 114 hectares and approximately 1.14 million net sellable m2 the Mytischi township development project will contain 50 high-rise apartment buildings, 13 low-rise commercial buildings, five elementary schools, seven kindergartens, two medical polyclinics and approximately 17,470 parking lots. Set to be completed in 2013 the township is projected to house 50,000 residents. According to an appraisal conducted by CB Richard Ellis at the beginning of 2007 the site has a pre-tax value of USD 1.33 billion (EUR 918 mln).
Upon announcing the agreement Kirill Pisarev, CEO of PIK said, 'We are delighted to have such a strong international co-investor onboard for our flagship project. It is a significant development for PIK and an appropriate model which could be replicated for other projects as we execute our regional expansion strategy.'
President of GIC Real Estate, Dr Seek Ngee Huat, commented, 'This investment provides GIC Real Estate with a strong entry into the Russian real estate market. We believe in the potential of the market and are excited to be partnering PIK, one of the largest developers in Russia, for this major Mytischi project.'
