MLD.L Regulatory News (MLD)

25 May 2007 09:22

Mirland Development Corporation PLC25 May 2007 25 May 2007 MIRLAND DEVELOPMENT CORPORATION PLC New Moscow Joint Venture MirLand Development Corporation (the "Company" or "MirLand") is pleased toannounce that it has entered into a framework property development agreementwith a local Russian company, Open Joint Stock Company "494 Department of WorkChief", to establish a limited liability joint venture partnership (the "jointventure") to develop up to three real estate projects in Moscow. On completionthe developments will comprise over 200,000 sqm of mainly residential realestate. The joint venture will initially focus on developing the following projects: • The Sokolniki Project which will comprise the development of residential buildings with an aggregate area of circa 27,841 sqm on approximately 1.3 hectares of land, close to the third ring road in Moscow. • The Nemchinvoka Project which will involve the development of approximately 13 hectares of land and the construction of residential and commercial premises covering at least 174,706 sqm, in a prestigious area in the western part of Moscow. Under the agreement MirLand will, subject to completion of due diligence to itssatisfaction and definitive agreements, provide debt funding of up to US$116.5million in aggregate for the first two Moscow projects, the Sokolniki Projectand the Nemchinovka Project. The funding will be provided by MirLand subject tocompletion of various milestones and will be financed from its own resources.In return MirLand will receive a 51 per cent. equity interest in the jointventure and a share of the profits attributable to the joint venture of not lessthan 50 per cent. The Company will make its first funding payment of US$14million into the joint venture shortly in order to support initial projectset-up and design stages. This amount will be secured and repayable in the eventthat the transaction does not proceed. Commenting, Moshe Morag, chief executive of MirLand Development Corporation,said: "The joint venture brings together the construction experience and track recordof our new local Russian partner, which has obtained the rights to develop theprojects, and the international development experience and financing of MirLand." For further information: MirLand Development Corporation plc +74 951 303 109 Roman Rozental +972 5227 76640 roman@mirland-development.com Financial Dynamics +44 20 7831 3113 Stephanie Highett/Dido Laurimore Stephanie.highett@fd.com/dido.laurimore@fd.com This information is provided by RNS The company news service from the London Stock Exchange