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Mirland Dev Corp PLC MLD Financing for St. Petersburg Development

  Mirland Dev Corp PLC (MLD) - Financing for St. Petersburg Development

RNS Number : 4885Q
Mirland Development Corporation PLC
07 November 2012




7 November 2012

                     MirLand Development Corporation plc

                         ("MirLand" or the "Company")

  New construction financing and launch of marketing for the second phase of
            Triumph Park residential development in St. Petersburg

MirLand,  one  of  Russia's   leading  residential  and  commercial   property 
developers, announces that its wholly owned subsidiary Petra 8 LLC  ("Petra") 
has today  entered into  new loan  agreement with  SberBank of  Russia  Bank 
("SberBank"  or  the  "Bank").  This  will   provide  a  line  of  credit   of 
approximately $47.5  million (the  "Loan"). The  purpose of  the Loan  is  to 
finance the  construction  of  630  apartments,  being  the  second  phase  of 
MirLand's "Triumph Park" mixed use residential development in St. Petersburg.

The Loan will provide approximately 70% of the construction cost of the second
phase of the project and and  fulfils the outstanding funding requirement  for 
the project. It will  be provided to  Petra in installments  over the next  24 
months, and will  be secured  by appropriate mortgages,  charges, pledges  and 
other customary security  interests for the  benefit of the  Bank and  entered 
into by Petra  and the Company.  The Loan matures  in three years,  and is  in 
addition to the facility that was previously granted by the Bank to Petra, the
outstanding balance of which, to date, is approximately $2 million.

MirLand launched its sales campaign for  this second phase of Triumph Park  on 
September 24 2012  and has  pre-sold 190 out  of the  630 units,  representing 
approximately 30% of the phase. This  follows the successful marketing of  the 
first phase of the project, from which 480 of 510 units have been pre-sold  in 
less  than  one  year.  Total  proceeds  from  the  both  phases  amounted  to 
approximately $85 million. Completion  of construction of  the first phase  is 
planned for Q2 2013.

The  project  offers  high  quality,  competitively  priced  housing  in   St. 
Petersburg's strengthening residential market. Situated on a well located,  40 
hectare site, the scheme represents one of the few large scale developments in
the city  in  close  proximity  to  major  transport  links.  Furthermore  the 
development will be the first eco-residential complex certified by BREEAM, the
world's leading assessment organization of green and sustainable building,  in 
St. Petersburg.  It will  provide attractive  features including  ecologically 
friendly  construction  materials,  energy   efficient  design,  reduced   CO2 
emissions, water  purification  filters and  high  speed eco  lifts  certified 
according to ISO 14001. The flexibility of the apartment mix both as to  range 
of sizes  and  fit-out options  is  designed to  appeal  to a  wide  range  of 
purchasers.

The  total  net  sellable  area  of  the  second  phase  of  the  project   is 
approximately 32,600 square metres  and there will be  1,500 square metres  of 
retail space  and two  levels  of underground  parking providing  106  spaces. 
Physical completion of the second phase is planned for Q4 2014.

When the entire development  is finished in 2020,  Triumph Park will  comprise 
9,000 apartments, approximately 58,000 square  metres of retail space,  60,000 
square  metres  of  offices  and  a  variety  of  public  amenities  such   as 
kindergartens, schools and parks.

Commenting on the Loan and the launch of marketing of Triumph Park,  MirLand's 
Chairman Nigel Wright said:

"Securing financing for the  second phase of Triumph  Park from Sberbank is  a 
further valuable endorsement of the project  and builds on the success of  the 
first phase, also funded by SberBank. Sales of first phase and early  interest 
in the second have been  very strong, underlining the desirable  specification 
and excellent location of  the property. I am  confident that the  development 
will continue to prove very successful."

For further information, please visitwww.mirland-development.com, or contact:

                                    

MirLand Development Corporation plc 

Roman Rozental                       +7 495 787 49 62

roman@mirland-development.com        +7 499 130 31 09

                                    
FTI Consulting                       

Dido Laurimore / Will Henderson      +44 20 7831 3113





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCBFBRTMBTMBBT -0- Nov/07/2012 07:00 GMT
 
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