R.G.I. International Limited
FOR IMMEDIATE RELEASE
2 December 2011
R.G.I. INTERNATIONAL LIMITED
PROGRESS UPDATE ON MICROGROROD <<V LESU>> COMMUNITY DEVELOPMENT
R.G.I. International Limited ("RGI"), the property development company focusing on quality residential and retail properties within Moscow and the surrounding areas, today announces that it is making good progress at Microgorod <<V Lesu>> ("V Lesu") residential community development.
Interest in V Lesu among home buyers has been strong. Since its official sales campaign was launched at the beginning of October 2011 47 apartments have been sold whilst contracts on a further 67 properties have been signed, subject to mortgage approval. The majority of the sales have been for the more expensive three-bedroom apartments which are selling for approximately Roubles 7.0m (approximately $235,000).
Sberbank, one of Russia's leading mortgage providers, is offering a special low interest mortgage for V Lesu during December. The interest rate is 7.9% compared to what the directors believe is the normal best rate of 10%. Typical Russian mortgage rates range between 12% to 15%. This low rate, the Directors believe, is unique in the Russian mortgage market.
The Directors believe demand from potential homebuyers to acquire an apartment at V Lesu with a mortgage is well above average. The Directors also believe that typically in Russia, only between 10% and 20% of buyers do so with a mortgage. At V Lesu the rate is between 50% and 70%. As a result Sberbank has already installed its own staff in the V Lesu sales offices and it plans to increase the number.
Located in the Krasnogorsk district, only 23 Km from the Kremlin, V Lesu occupies a 77 hectare site. The first phase, currently under construction, will comprise a total of 1,193 apartments in three buildings together with underground parking and community facilities. Completion of the first phase is planned for 2013.
Alan Hibbert, acting Chief Executive of RGI, said: "We are in the process of bringing a Western Europe style residential development to Moscow where we are using our proven track record of luxury development to create well designed affordable homes. Our special mortgage offer is aimed at the middle class aspiring home owner and demonstrates the availability of high quality housing at relatively affordable prices".
"It is interesting to see that the greatest demand is for our two and three-bedroom family apartments reflecting the underlying ethos of V Lesu. The scheme is unique, not only in terms of its design and function, but also in its fully integrated approach that we believe serves all the needs of its residents. We believe that, by incorporating fully fitted apartments, underground parking and all the necessary social infrastructure in one development, there will be tremendous interest from both buyers and the general public."
Development of V Lesu will create a total of approximately 9,000 apartments, together with a broad range of community facilities that includes three kindergartens, two large primary schools, on site medical facilities as well as retail and business space. It is anticipated that on completion V Lesu will be a community of around 30,000 people.
Ends.
Contact:
RGI Group +7 (495) 933-61-80
Alan Hibbert, Chief financial Officer and interim CEO
Emanuel Kuzinetz, Director +44 (0) 1481 725729
Lazard & Co. Limited - Financial Adviser +44 (0) 207 187 2000
Patrick Long
Nick Fowler
Baron Phillips Associates - Financial PR Adviser +44 (0) 207 920 3161
Baron Phillips
Shore Capital - Nominated Adviser +44 (0) 207 408 4090
Anita Ghanekar
Edward Mansfield
