RGI International Limited

May 31, 2011 02:00 ET

RGI Secures Construction Finance for First Phase of US$2bn Kingston Residential Community Development

LONDON, UNITED KINGDOM--(Marketwire - May 31, 2011) - RGI International Limited ("RGI" or the "Company") (AIM:RGI), the AIM listed developer of quality residential and commercial real estate in Moscow and the surrounding area, today announces it has signed a loan agreement with Sberbank of Russia ("The Loan"). The Loan is for 4.9bn Roubles, approximately US$175m, of construction finance for the first phase of RGI's US$2bn Kingston residential community development. The term of the Loan is 4 years.

Construction of the Kingston Project, now renamed Microgorod"VLesu", commenced in March 2011 and pre-sales are expected to start in September 2011. Microgorod"VLesu" will comprise approximately 8,000 apartments, together with a broad range of community facilities that includes three kindergartens, two large primary schools, on site medical facilities as well as retail and business space. It is anticipated that on completion in 2017 Microgorod"VLesu" will be a community of around 30,000 people.

Development will be in seven phases. The first phase will comprise 1,193 apartments, underground parking, other related community facilities and some commercial space. Marketing of the apartments, consisting of a range of one, two and three bedroom units, commences shortly with an on-site sales office set to open in autumn 2011.

Unusually for the Moscow region the mid-market priced apartments are being completed to the highest standards of fit-out instead of the usual "shell and core" approach. Buyers will be able to occupy the apartments once the purchase has been completed as the units will be fully fitted and decorated. Included in the purchase price will be at least one parking space.

The Sberbank, the major Russian bank, will be able to provide its mortgage products with attractive rates of up to 90% of the purchase price for those wishing to buy properties at Microgorod"VLesu".

The Microgorod"VLesu" community development occupies a site of approximately 77 hectares (approximately 190 acres) approximately 23 km from the Kremlin. The aim is to combine the best of city facilities with country living on a development priced at the emerging middle class home owner. Next year will see completion of an adjacent Metro station, about 1.6 km from Microgorod"VLesu", and the extension of the Pyatniskoye highway to six lanes is also expected to provide direct car access to the centre of Moscow.

Boris Kuzinez, RGI's Chief Executive Officer said: "We are creating a unique fully integrated small town only 23km from the Kremlin that brings the best of western European architecture and design to a mid-market residential development in Moscow. I also believe that Microgorod"VLesu" is a ground-breaking project because, again uniquely, it offers home-buyers fully finished and fitted apartments completed to an extremely high standard. RGI will leverage the experience gained in the luxury residential market to develop superbly designed, yet affordable, community living.

"Although anticipated completion of the entire project is expected to be in 2017, if, as we expect, there is an extremely positive response from home-buyers development could be completed ahead of schedule."

Contact Information

  • RGI
    Emanuel Kuzinetz
    +44 (0) 1481 725729

    Lazard & Co. Limited - Financial Adviser
    Patrick Long
    +44 (0) 20 7187 2000

    Lazard & Co. Limited - Financial Adviser
    Nick Fowler
    +44 (0) 20 7187 2000

    Baron Phillips Associates - Financial PR Adviser
    Baron Phillips
    +44 (0) 20 7920 3161

    Shore Capital - Nominated Adviser
    Anita Ghanekar
    +44 (0) 20 7408 4090

    Shore Capital - Nominated Adviser
    Edward Mansfield
    +44 (0) 20 7408 4090