Kaliningrad

Given its strategic location Kaliningrad is an area of priority development for the Russian government. The company made two investments in the Russian enclave on the Baltic Sea in the aftermath of the Government decision to close all gambling establishments in Russia as of July 2009, while simultaneously granting gaming rights to four districts of Russia including Kaliningrad. Kaliningrad claimed the label of "Las Vegas on the Baltics", and our two relatively small investments reflected the potential uplift resulting from the growth of the gaming and manufacturing industries, and Kaliningrad's positive demographic trend. The fact that Kaliningrad is one of the host cities of the 2018 World Cup should also provide a strong boost to the local economy.

• 1
• 2
• 3

Plan

83 hectares of development land
Kulikovo district, 6km from Kaliningrad city

The company acquired 83 hectares of agricultural land, 6km from the city of Kaliningrad in 2007, of which 78 hectares have been rezoned for residential use thereby generating value uplift. Given the good location of the site on the main road from Kaliningrad city to the prestigious sea resort of Svetlogorsk, we are confident of positive future developments with this investment once the local economy rebounds.

Industrial facility in Kaliningrad city

The company also acquired a 3.2 hectare industrial site 2 km from the centre of Kaliningrad city. Kaliningrad has an increasing population, an investor-friendly tax status and strong support from the Federal government. The site had previously been active in the wood-processing sector, is well-served with utilities and has a rail-link. We were in exit discussions with several parties pre-crisis who had the intention of developing new manufacturing activities on the site, and are optimistic of an exit as the overall economic situation improves. We are open to proposals or offers in this regard.