OREANDA-NEWS. April 22, 2010. CJSC Mosstroyrekonstruktsiya (a subsidiary of LSR Group) has entered into an investment contract with Megapolis-Sever Company to develop mass market residential housing in Nakhabino in the Moscow region on the land of approximately 44 ha, reported the press-centre of LSR Group.

Igor Levit, CEO of LSR Group commented:
"Moscow and the Moscow region, the largest real estate market in Russia, has always been one of the key target regions for our business development. We entered Moscow market already in 2001; however, the volume of our activities in Moscow has been limited since we chose to avoid land acquisition at overheated prices. Today we see the opportunities for land acquisitions and participation in investment agreements at favorable conditions, which enable us to ensure significant growth of our real estate development business in Moscow and the Moscow region.”

According to the contract terms, CJSC Mosstroyrekonstruktsiya is to construct a mass market residential neighbourhood on this land of 190 thousand square meters of net sellable area, including high, middle and low-rise houses of EURO’Pa series produced by OJSC Zavod ZhBI-6 (a subsidiary of LSR Group).

The total amount of investment by CJSC Mosstroyrekonstruktsiya into the project is estimated at RUR 8 billion in the form of design work, supplies of own reinforced concrete items, housing and internal communications construction. According to the contract terms, 80% of all residential areas in the new neighbourhood – 152 thousand square meters – will be transferred to CJSC Mosstroyrekonstruktsiya ownership for subsequent sale to end customers. The rest will be transferred to the investment contract counterparty as a reimbursement of the contribution of rights for land plots to be developed.

The new neighbourhood is to be built in Nakhibino, 16 km away from Moscow, in the north-west direction, with well-developed public and transport infrastructure. The district is connected with the centre of Moscow via two motorways – Volokolamskoe Shosse and Novorizhskoye Shosse.

The residential neighbourhood will consist of low-rise EUROhouses of approximately 38 thousand square meters of net sellable area, and also of middle-rise and high-rise houses of the EURO’Pa series of net sellable area of approximately 150 thousand square meters.

Start of construction of the low-rise residential neighbourhood is planned in summer and completion this year. The whole project of 44 hectares is expected to be developed in 5 years.