The Media City Development is a proposed technology-intensive “media” building intended to be part of a larger project that is currently being undertaken by the City of Moscow to develop VDNKh, an area in northern Moscow, into the city's center for the media industry (Media City).

The subject property is situated in a well known district of Moscow adjacent to the Ostankinsky Telecenter television tower, one of the largest in the world, as well as the all-Russian exhibition centre and landmarks such as “Usadba Ostankino”, Church of Resurrection, Ostankinsky Pond, and Ostankino Park. In addition, a fountain and a concert hall are located on the neighboring site. Public transportation is available via the VDNKh underground metro station, Telecentre overland metro station and bus routes on Akademika Koroleva and Novomoskovskaya streets.

Design
RGI’s current design for the Media City Development entails a commercial building that would be ideally suited to various kinds of media companies and related service providers and offers advanced state-of-the-art communications and digital infrastructure along with other relevant amenities and equipment such as video production studios and editing facilities. There are plans to construct a 7-storey media complex with underground parking and an overall area of 87,000 sq.m, roughly 50,000 of which would be leasable commercial office space, and 600 parking spaces. The building would have a modern design and would form the center of Moscow’s future Media City.

Status
The proposed development plan for Media City is based on RGI’s possession of an Investment Contract and the existing Act of Permitted Use of Land (“ARI”). The project is currently in the pre-design stage. The Company’s next steps are to obtain a land lease for the site and to renew and extend the Investment Contract which is expected to take place during 2009. The project is planned to be completed to a shell and core standard in 2013 assuming the necessary financing for construction is organized and the remaining design and construction permissions are obtained on a timely basis. RGI will not begin construction unless financing is secured.

Strategy
RGI’s strategy for Media City is to sell the development outright under appropriate market conditions either before or after the project is completed. RGI will seek to identify a high-profile buyer for the entire building marketing the space to media companies with a view to providing state-of-the-art technological infrastructure.