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TOWNSHIP DEVELOPMENT: GIC property unit in Russian joint venture

THE property arm of the Government of Singapore Investment Corporation (GIC), GIC Real Estate, and a Russian company have announced a joint venture to develop a residential township north-east of Moscow.

GIC Real Estate will acquire a 25 per cent stake in the project for about US$233 million (S$335 million). Its partner, PIK Group, will hold the rest.

The 1.14 million sq m Mytischi township, as the development is called, will house around 50,000 people when it is completed in 2013. It will have 50 high-rise apartment buildings, 13 low-rise commercial buildings, five elementary schools, seven kindergartens, two medical clinics and about 17,470 parking lots.

‘This investment provides us with a strong entry into the Russian real estate market,’ said GIC Real Estate president Seek Ngee Huat.

‘We believe in the potential of the market and are excited to be partnering PIK, one of the largest developers in Russia.’

The Mytischi district site – one of PIK’s largest development sites – has a pre-tax market value of US$1.33 billion as at Jan 1, according to a CB Richard Ellis appraisal.

PIK chief executive Kirill Pisarev said getting such a strong international co-investor as GIC Real Estate for the flagship project is a significant development for the company.

 

Source: The Straits Times 22 Jan 08

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