The Khilkov Development is a proposed ultra high-end residential building located in the most exclusive residential neighborhood in the center of Moscow on Khilkov lane, an area commonly known as Moscow’s Golden Mile. Currently, the site comprises a small park and an old residential building which will be demolished as part of the redevelopment. There are three main tourist attractions nearby including the Cathedral of Christ the Savior, Gorky Park and the Kremlin, all within walking distance. The site is only 500 meters from the Garden Ring and Park Kultury and Kropotkinskaya metro stations are within five minutes walk.


Design
RGI’s current design for the Khilkov Project entails a gross area of approximately 27,258 sq.m including 14,470 sq.m of residential space and approximately 173 parking lots. The remaining area is expected to consist of common areas, ancillary and maintenance areas.

As with other projects that RGI’s founder has completed in the immediate vicinity (e.g., Copper House, Butikovsky and more), Khilkov will have an extremely high quality fit and finish with all materials and amenities being of the best quality, and a unique modern architectural design highly unusual for residential buildings in Moscow.

Status
The proposed development plan for Khilkov is based on RGI’s possession of an Investment Contract and ownership of a majority of the apartments in the existing building occupying the site. The project is currently in the pre-design stage. The Company’s next step is to obtain a land lease and approval of the City of Moscow for the General Plan of the Land Plot (the “GPZU”). The project is expected to be completed to a shell and core standard during 2012 assuming that the remaining design and construction permissions are obtained on a timely basis and that sufficient financing is available.

Strategy
RGI’s strategy for Khilkov is to pre-sell a significant part of the residential apartments in the building once design is completed and construction rights are obtained. The Company will only begin construction once financing is secured in the form of either construction loan or a sufficient level of pre-sales are made. Although the Company anticipates being able to finance all of the project’s construction costs with proceeds generated from pre-selling apartments.