OREANDA-NEWS. Sberbank CIB and RAMO-M Group reach deal to provide CJSC RAMO-M RUB 1.9 bln in financing over ten years. On March 13, 2013, a credit agreement was signed which will provide a line of credit of up to RUB 1.9 bln over ten years to CJSC RAMO-M. The funds will be directed towards financing the construction of the first phase of an exhibition complex and a four-star Four Points by Sheraton hotel, both in the city of Krasnodar. The construction will be managed by Starwood. The total area of the first phase of the exhibition center is 40,000 sq. meters and the hotel – 12,000 sq. meters (two hundred rooms). The deal was announced from Sberbank’s stand at the MIPIM international real estate show which is running from March 12-15 in Cannes, France.

Konstantin Sevastyanov, CEO of CJSC RAMO-M commented, “Our company is currently carrying out the ambitious project of building the largest exhibition complex in southern Russia under the management of one of the world’s leading exhibition operators. The exhibition complex is located near the “Red Square” shopping center which we built. The construction of a hotel at the same site under the management of Starwood, a leading international operator, will allow us to achieve synergy and the maximum effectiveness of both projects. We are grateful to Sberbank CIB for the financial support of our development projects and we thank them for their close cooperation with our company and their offering of new, interesting corporate finance products.”

Dmitry Kanushkin, Senior Banker at Sberbank CIB, said, “This is one of the landmark deals for the last year in Russia’s regional real estate financing market. The Sberbank team has been working with the RAMO-M Group for more than eight years. We are happy to be cooperating with the Group and, as before, are interested in the possibility of financing future large development projects.”