Cyprus-based MirLand Development has established a joint venture with a Russian company to develop up to three property projects in Moscow. On completion the developments will provide over 200,000 m² of mainly residential real estate.
Initially the venture will focus on two projects. The Sokolniki Project which will comprise the development of residential buildings with an aggregate area of circa 27,841 m² on approximately 1.3 ha of land, close to Moscow's third ring road.
The Nemchinvoka Project will involve the development of approximately 13 ha of land and the construction of residential and commercial premises covering at least 174,706 m², in the western part of Moscow.
Under the agreement MirLand will provide debt funding of up to US$116.5 million for these two projects and will receive a 51% equity interest in the joint venture. MirLand's new partner is known as Open Joint Stock Company "494 Department of Work Chief".
"The joint venture brings together the construction experience and track record of our new local Russian partner, which has obtained the rights to develop the projects, and the international development experience and financing of MirLand," said Moshe Morag, chief executive of MirLand Development Corporation.