OREANDA-NEWS. OJSC “Magnit”, Russia's largest retailer (the “Company”; MICEX and LSE: MGNT) announces the expansion of its greenhouse complex.

Please be informed that “Magnit” has begun construction on the expansion of its “TK Zelyonaya Liniya” (Green Line) greenhouse complex, which is located in the village of Plastunovskaya in the region of Krasnodar Kray. In 2014, Magnit plans to add an additional 40 hectares (99 acres) of greenhouses, which will be comprised of 2 structures of 20 hectares each. The 1st block will be operational in the Autumn of 2014 with the 2nd block coming on-line in the beginning of 2015. It is expected that the CapEx for the additional 40 hectares will be approximately 3.6 billion Rubles (USD 104 million USD).

As of the end of 2013, “TK Zelyonaya Liniya” (Green Line) operated 43 hectares, comprised of 40 hectares of greenhouses (8 structures of 5 hectares each) and 3 hectares of seedling hotbeds. The vegetables currently grown in the greenhouses are cucumbers, tomatoes, greens (lettuce, dill, parsley), and cherry tomatoes.

Please see the photo below for a birds-eye view of the “TK Zelyonaya Liniya” greenhouse complex. The photo was taken on January 18th, 2014.