Translated material
Lev Leviev wedged himself into the industrial zone
AFI Development will invest almost half a billion dollars in the Postal project
The development company AFI Development plc, owned by the famous entrepreneur Lev Leviev, announced yesterday its intention to implement a large project called “Pochtovaya” in the center of Moscow. The plan provides for the purchase of rights to develop a land plot with an area of 2.67 hectares and a construction area of 231.68 thousand square meters. meters from their owner - the MR Group company.AFI Development was created by the Africa Israel group controlled by Mr. Leviev to implement real estate projects in Russia. At the beginning of May, it held an IPO in London, as a result of which it raised $1.4 billion (capitalization amounted to $7.3 billion). The message about the Postal project was distributed on the London Stock Exchange.
The site in question is located in the area of Bolshaya Pochtovaya Street, on the Yauza embankment, surrounded by industrial enterprises. As reported in a press release from AFI Development, the Pochtovaya project includes 80 thousand square meters. meters of housing and hotels, 80 thousand square meters. meters of office space and 67 thousand square meters. meters of underground garages. AFI Development plans to spend $104.3 million on the purchase of land plots from MR Group, and the total costs of the project should be $465.2 million. According to market analysts, this is a low price for such a project. Commenting on the proposed deal, AFI Development CEO Alexander Khaldei noted: “We plan to add another major project to our portfolio. Pochtovaya demonstrates the company's ability to make long-term investments in the development of the city center. This is an integral part of our strategy to implement large-scale multi-format projects in the capital.”
Chairman of the Board of Directors of MR Group Viktor Labuzdko told Vremya Novostey that the agreement has not yet been signed, but “confirmed his intention to complete the transaction.” He noted that initially MR Group planned to build a multifunctional center on this territory, but then decided to sell the site. The company does not comment on the reasons for this decision.
According to the managing director of Jones Lang LaSalle Russia, Vladimir Pinaev, the MR Group company quite often engages in land development, that is, “it buys a land plot, carries out a number of works to increase the liquidity of the land, sometimes brings the project to a certain level and then sells it.” This is confirmed by Knight Frank partner Andrey Petrov: “MR Group, as a rule, sells its projects at the stage of obtaining permits or at the time of construction. They professionally coordinate and develop projects and then sell them to interested investors.”
Mr. Pinaev believes that this site has quite a lot of advantages: “It is located near the center, in close proximity to the Third Transport Ring and the Garden Ring. We're seeing strong demand from large landlords who want to locate in areas like this." Denis Kolokolnikov, General Director of the Russian Research Group, notes: “Historically, it so happened that the east of Moscow became an industrial area. In recent years, neither office nor even residential real estate has been actively developed there. The presence of various industries has left a certain imprint on the image of the district, and it is hardly possible to call it prestigious. Now the area is gradually developing; Horus Capital recently brought a modern business center to the market. In the absence of quality supply, demand in the Eastern District is quite high.”
As of the end of March, Jones Lang LaSalle estimated the cost of AFI Development projects in Russia at $3.69 billion. In total, Africa Israel controls 21 real estate properties in Russia with a total area of 2.6 million square meters. meters, they are mainly located in Moscow. Among the company's projects is the reconstruction of the Belorussky railway station area, as well as a five-star hotel with an area of 60 thousand square meters. m and two office buildings of class "A" in the same area. In addition to the capital, the company also operates in St. Petersburg, Volgograd and other cities.
MR Group was created in 2003 and is controlled by General Director Roman Timokhin and Chairman of the Board of Directors Viktor Labuzdko. The total portfolio of completed projects is over 980 thousand sq. m. m, about 1 million sq. m. is under development. m.