According to Mr. Mikhail Semenov, General Director, Renova StroyGroup owned by the Renova Holding of Mr. Viktor Vekselberg, is establishing two real estate investment funds for five years. According to Mr. Semenov, the trust of 300 million rubles has already been financed by an undisclosed investor, and the second trust for qualified investors is being developed. It was confirmed by Mr. Dmitry Zhibitsky, General Director of Strategiya Management Company, which will manage the trusts.

Mr. Semenov hopes that in 2010-2011 the trusts will attract from 1.6 billion to 3 billion rubles for financing Renova’s residential developments: Akademia City in Yekaterinburg (9 mln. sq.m. of residential real estate and 4 mln. sq.m. of commercial real estate), Sunny Valley in Chelyabinsk (3.2 million sq.m. of housing), Yablonevy Posad in Yaroslavl (over 200,000 sq.m. of housing), etc. According to the Renova-StroyGroup memorandum, investment profitability is expected at 25% per annum (however dividends will be paid in the second year). According to Mr. Artem Tsogoyev, a managing partner of the Moscow Central Real Estate Exchange, this is the pre-crisis profitability level which can be reached in the near future. Real estate investment funds have been long used by developers for attracting investments (Inteco and Miramax Group). Operations within the trust are exempt from income and property taxes.

Renova StroyGroup is looking not only for private investments. The company has announced winning the bid for selling apartments to the Ministry of Defense, with the largest being 171,800 sq.m. for 5.7 billion rubles in Yekaterinburg and 33,200 sq.m. for 1.2 billion rubles in Yaroslavl.



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