RGI to raise $90m from new shareholder

RGI International, the AIM-listed developer of Russian commercial and residential real estate, said this week that it is raising up to $90 mln (EUR 73 mln) of equity from a new shareholder.

Synergy Classic, the investment vehicle of Rusresorts' Petr Shura, has agreed to subscribe for 1.8 million new shares at a price of $5 per share, with an option to subscribe for an additional 34.2 million new shares by mid-July, representing a total investment of $90 mln.

If completed, the operation will give Synergy Classic a 22.25% stake in RGI, whose portfolio comprises six projects, covering a total of 1.404 million m² with a value of $730 mln.

'We are delighted to have signed this agreement with a new investor who has a strong understanding of the potential of the Moscow real estate market', said Jacob Kriesler, executive chairman of RGI. 'The market is showing sustained signs of recovery and this will provide additional capital for developing our projects and taking advantage of new investment opportunities.'

RGI's management has been developing property in Moscow since 1995 and the company has been listed on the AIM market of the London stock exchange since December 2006.

The acquisition comes hard on the heels of Petr Shura's creation of Highriser in 2009. Highriser is an investment company purchasing shares of undervalued development companies and projects. In 2008, Shura also established Rusresorts, a major developer of hotels and resorts in Russia and the CIS.