The Ostozhenka Development is a proposed ultra high-end single-family townhouse located in the most exclusive residential neighborhood in the center of Moscow at the intersection of Ostozhenka and Khilkov streets.

The area is commonly known as Moscow’s Golden Mile.

The site is located in a conservation area that has special construction requirements to ensure that new building developments blend in with existing structures in order to preserve the look and feel of the neighborhood.

Design
RGI’s current design for Ostozhenka has a gross area of 1,000 sq.m comprising five levels, including two underground levels, and an attic. The lower underground floor would be used for a parking garage with four spaces, ancillary and technical facilities, and a home theatre. The upper underground floor would comprise an entrance hall, a swimming pool and a winter garden. A drawing room, a dining room and a study would be located on the first floor, with bedrooms on the second floor. The attic would contain a library and a studio and a terrace would be included on part of the roof.

Status
The proposed development plan for Ostozhenka is based on RGI’s ownership of the existing building on the site and the possession of a long-term land lease. The Company’s next step is to finalize and approve the concept design with the authorities. The Company estimates that the project will be completed in 2012 assuming the necessary design approvals and construction permits are obtained in a timely manner and subject to finding a suitable buyer.

Strategy
RGI expects to be able to finance the total cost of construction for the project with proceeds generated from down payment. Marketing efforts will begin after design has been completed and development rights have been obtained and subject to market condition.