Permgrazhdanstroy (PGS for short!) is the biggest developer in Perm city (about 1,200,000 inhabitants and another 800,000 in the surrounding area). PGS has assets of 19 landplots & 3-4 buildings including their offices, value today probably 80M US$. They are proposing 50% equity in the SPV created for their Business Park project, the first modern mixed use complex in Perm right in the city centre; they are also interested in debt finance:
Landplot 2.05 hectares (full freehold ownership of 1.07 hectares)
Offices 20,000 M2
Commerce 40,000 M2
Hotel 4* 15,000 M2 (175 rooms, 25 suites)
Luxury apartments 15,000 M2
Parking 27,000 M2
LOI from Strabag for construction, not binding.
LOI from Starwood for management of a Sheraton 4* Hotel.
Jones Lang Lasalle feasibility study, agreement to find tenants/purchasers.
TOTAL INVESTMENT ENVELOPE 200+M Euros.
Landplot valuation 83.3M Euros
PGS have invested 45M Euros in the site, relocation of previous inhabitants, feasibility study, master plan by German architect group, construction permits launched, permits for utilities also launched.
Investor input 50M Euros for 50% equity
Credit lines from Russian banks 89.2M Euros to complete financing
NET PROFIT FOR INVESTOR 114M