In a notice to the Tel Aviv Stock Exchange (TASE) today, Ocif Investments and Development Ltd. (TASE: OCIF) responded to reports in the Israeli press, citing a report by Russian newspaper “Kommersant”. The paper quoted Arcadi Gaydamak as saying that Ocif had reached an agreement with a Russian firm, whose name he did not disclose, for the purchase of lots in the greater Moscow area near Vnukovo Airport. Ocif said today that the company had notified the TASE on June 28 that it was examining three deals in Moscow, including an 870,000-sq.m. undeveloped lot with 800,000 sq.m. in building rights for an office, logistics and hotel complex. This deal could total $500-700 million. Ocif added that it was in the preliminary stages of due diligence relating to this deal, and that it had not yet signed any binding agreement with the landowners.
“Kommersant” reported that Gaydamak would invest more than $2 billion in Russian real estate, and estimated his worth at $3-5 billion. The paper said that Ocif had bought land at Vnukovo Airport for $158 million, on which it plans to build 800,000 sq.m. of high-quality offices and 100,000 sq.m. of hotels and commercial space on the site. After the regulatory approvals are received, construction is scheduled to start in 2008. The value of the entire deal, including financing and development, is estimated in the range of $1.6-2 billion.
“Kommersant” quotes Gaydamak as saying that he chose the sites because of their convenient location, with relatively quick access to central Moscow, which is considered to have some of the worst traffic in the world. He also said that he has other projects in Moscow that he has yet to transfer to Ocif, and are approved for construction, such as another 200,000 sq.m. of office space at a $400 million investment. The paper listed other projects of Gaydamak's, including a hotel in Saint Petersburg and apartments in Moscow, although he apparently has not yet decided whether to include them in Ocif.
“Kommersant” said that Gaydamak was planning to build a $7.5 billion commercial complex, but that he is known to be involved in only one project.
Published by Globes [online], Israel business news - www.globes.co.il - on July 25, 2007
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