MirLand, one of Russia's leading residential and commercial property developers, announces that its wholly owned subsidiary Petra 8 LLC has today entered into new loan agreement with SberBank of Russia Bank.
This will provide a line of credit of approximately US $47.5 million (approx. 36.9 million). The purpose of the Loan is to finance the construction of 630 apartments, being the second phase of MirLand's 'Triumph Park' mixed-use residential development in St. Petersburg.
The Loan will provide approximately 70% of the construction cost of the second phase of the project and and fulfils the outstanding funding requirement for the project. It will be provided to Petra in installments over the next 24 months, and will be secured by appropriate mortgages, charges, pledges and other customary security interests for the benefit of the Bank and entered into by Petra and the Company.
The Loan matures in three years, and is in addition to the facility that was previously granted by the Bank to Petra, the outstanding balance of which, to date, is approximately $2 million (approx. 1.55 million).
MirLand launched its sales campaign for this second phase of Triumph Park on September 24 2012 and has pre-sold 190 out of the 630 units, representing approximately 30% of the phase. This follows the successful marketing of the first phase of the project, from which 480 of 510 units have been pre-sold in less than one year. Total proceeds from the both phases amounted to approximately $85 million (approx. 66 million).
Completion of construction of the first phase is planned for Q2 2013.
The project offers high quality, competitively priced housing in St. Petersburg's strengthening residential market. Situated on a well located, 40 hectare site, the scheme represents one of the few large scale developments in the city in close proximity to major transport links. Furthermore the development will be the first eco-residential complex certified by BREEAM, the world's leading assessment organization of green and sustainable building, in St. Petersburg.
It will provide attractive features including ecologically friendly construction materials, energy efficient design, reduced CO2 emissions, water purification filters and high speed eco lifts certified according to ISO 14001. The flexibility of the apartment mix both as to range of sizes and fit-out options is designed to appeal to a wide range of purchasers.
The total net sellable area of the second phase of the project is approximately 32,600 m² and there will be 1,500 m² of retail space and two levels of underground parking providing 106 spaces. Physical completion of the second phase is planned for Q4 2014.
When the entire development is finished in 2020, Triumph Park will comprise 9,000 apartments, approximately 58,000 m² of retail space, 60,000 m² of offices and a variety of public amenities such as kindergartens, schools and parks.
Commenting on the Loan and the launch of marketing of Triumph Park, MirLand's Chairman Nigel Wright said: "Securing financing for the second phase of Triumph Park from Sberbank is a further valuable endorsement of the project and builds on the success of the first phase, also funded by SberBank. Sales of first phase and early interest in the second have been very strong, underlining the desirable specification and excellent location of the property. I am confident that the development will continue to prove very successful."
Source: FTI Consulting