Thursday, 10 April 2008

IPO to raise cash for Moscow skyscrapers

Financial News

April 7, 2008

Jason Corcoran in Moscow

Russian property developer Mos City Group is planning a flotation on the London Stock Exchange in the autumn to help fund the building of skyscrapers in Moscow's new Canary Wharf-styled business district.

The offering, part of a growing trend for Russian property companies to list in London, could raise up to $1bn (€636m) or 20%.

MCG is owned by Pavel Fuks, a Russian businessman who has been involved in banking and manufacturing since 1995. In early 2000, he focused on property development. The firm, which is this year aiming to list 20% of its stock on the London Stock Exchange, is building three towers in Moscow City (right), the emerging business district in the Capital's Presnensky region.

The concept of Moscow City is to create the first zone in Russia that will combine business activity, living space and entertainment. Three metro stations and a rapid transit system linking it to Sheremetyevo-2 airport are also being built.

The project enjoys the full backing of Moscow Mayor Yury Luzhkov and the city council, which recently passed a ruling granting the area free economic zone status, and providing preferential tax treatment to all enterprises leasing office space there.

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