At a press conference on Tuesday, March 6, Deutsche Bank AG vice president Olga Podoinitsyna announced that the bank will finance the project to reconstruct the Hotel Moskva (Moscow). The overall amount of financing is $600 million.
A portion of the shares in the company DekMos, the hotel’s owner, are set to be issued on the international exchange, and it is believed that Deutsche Bank will be the exclusive placement agent.
As reported by Dmitry Garkusha, general director of DekMos, the project is expected to have a return on investment of 10 years. “Financing will occur in accordance with the schedule set by the Moscow government, and there is no talk of possible delays at any stage,” confirmed Garkusha.
“This project is of huge significance for Deutsche Bank, indeed, rather large and reputable,” noted Victor Makshantsev, head of real estate management at Deutsche Bank. “Our main goal is to increase sharply our market share, via financing, of significant and large-scale projects with long-term prospects of success.”
Therefore, this is a key project for the bank, noted Makshantsev, and it is unique in terms of the attracted funds as well as the location, given Hotel Moskva is the closest to the Kremlin of all hotels, and the concept. In addition to the hotel, there will also be a shopping mall, an office area and a conference hall.
The operator of the hotel will be Four Seasons, for whom this will be their first project in Russia. The general construction contractor is Strabag SE, while the architectural plans are being drawn up by Wimberly Allison Tong & Goo (WATG). Design of the interior is being carried out by Britain-based Richmond International Hotel & Leisure Design Consultants, while the power, electrical and consulting and technical services are being provided by Canada-based Rybka Smith and Ginsler Limited.
Representatives of Deutsche Bank noted that they are also preparing a number of other large projects in Russia’s commercial real estate sector, although no details have been disclosed.
/ Source: Commercial Real Estate
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