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Friday, September 28, 2007

Biggest Deal In Kiev Commrecial RE Announced

Dmitry Firtash became co-owner of one of the largest Kiev commercial real estate operator - JV Mandarin Plaza which owns same name de-luxe shopping center, as well as Parus Office in the heart of the Kiev.

According to the sources, he is owner of Heritage Properties International AB, which is involved in the deal .

Firtash received 55% stake of the property. The deal amount estimates by USD 500-560 mln., which is an absolute top result for the local commercial real estate market.

25% of the shares sold by Vagif Aliev, Head of Mandarin Plaza' supervisory board, the rest by another private person. After closing of the transaction they both will come away from this business project, but that Aliev will retain in supervisory board as a member.

According to the TMM CEO Nikolay Tolmachev, cost of 100% shares of JV Mandarin Plaza is about USD 1.02 billion. "Thus, 55% can cost at least $ 560 million," he said.

Before that, the largest purchase was Globus shopping centre deal for more than USD 200 mln., closed by British fund London & Regional Properties .