MirLand Development Corporation, one of Russia's leading residential and commercial property developers, is pleased to announce that it has entered into an agreement to acquire the last remaining stake in its Skyscraper project at Dmitrovskoe schosse 1 Moscow.
MirLand will acquire the remaining 21% interest in a Russian company that has the leasehold rights in the land to be used for the project for US$4.5m, less approximately US$0.6m of debt owed by the Russian company. Completion of the acquisition of the final 21% balance is expected to take place by the end of 2007. MirLand already owns an effective 79% interest in the Russian company. In order to expedite the acquisition of the final balance MirLand has elected to waive the condition that construction permits be obtained prior to closing. The Company is progressing the final stages of design for the project as part of the process of securing the necessary construction permits.
The acquisition will enable MirLand to fully progress its plans to develop a 47 storey office tower offering circa 90,000 m² prime lettable office space and 1,500 parking spaces. Construction is anticipated to begin in Spring 2008.
Commenting on the announcement, Moshe Morag, chief executive, said: "This final acquisition places us firmly on track for us to commence construction of this exciting development in a prime location near to Moscow's third ring in Spring 2008. We remain pleased with the rate of progress in the execution of our strategy since the IPO."
Source: MirLand Development