The Tsvetnoy Development is a modern retail building located in the center of Moscow on Tsvetnoy Boulevard between two of the city’s famous ring roads—the Boulevard and the Garden Ring.

The metro station Tsvetnoy Boulevard is located just adjacent to the project. A park is located directly across the street and a famous landmark, Moscow’s oldest circus, is situated nearby. The site is centrally located and easily accessible from anywhere in the city.

Design
The Tsvetnoy Development is proposed to be used as a shopping centre. The building has a gross area of 36,765 sq.m comprising of approximately 13,500 sq.m of prime leasable retail space and 396 parking spaces for visitors. The remaining area is used for storage, service and subsidiary space. There are seven levels and four underground levels. The first floor forms a spacious entrance lobby and shopping area and the upper floors include additional areas for department stores and specialty retail boutiques. During 2008, Tsvetnoy received an award for its impressive architectural design.

Status
The Tsvetnoy Development is currently under construction and is expected to be completed to a shell and core standard during the second half of 2009. The Company is currently finalizing the fit-out concept, floor plan and desired tenant mix for the Tsvetnoy Development. Pre-leasing activity is expected to begin during the third quarter of 2009 after the fit-out concept for the building is completed.

Funding for the construction of Tsvetnoy is secured via a limited recourse US$100 million loan facility provided by Sberbank which was arranged in March 2008 and matures in 2012. Management expects the facility to be sufficient to cover all of the project’s remaining development costs.

Strategy
RGI’s strategy for the Tsvetnoy Development is to market and operate the building as a mid-tier, inner-city shopping center with a department store design and a varied product category mix. The Company's current strategy is to lease units within the Tsvetnoy Development to a number of retail clients thereby generating a source of recurring income for the Company, although RGI would also consider selling the Tsvetnoy Development outright under appropriate market conditions either before or after the project is completed.