The Victory Park Development is a proposed high-end hotel and residential building located opposite to Victory Park across the river from Moscow City, a new world-famous commercial district located approximately seven kilometers to the west of the Kremlin. The site of the Victory Park development itself is located in a high-end residential area.

There is currently a commercial building comprising approximately 5,000 sq.m located on the site that will be demolished prior to construction.

Victory Park is located close to one of the city’s main traffic routes, Kutuzovsky Prospect, which continues from New Arbat and leads west directly to Moscow's most prestigious suburbs situated along Rublyovo-Uspenskoye and Mozhayskoe highways. Beginning at the downtown Ukraine Hotel, Kutuzovsky Prospect flows around the Arc de Triumph and passes Victory Park at Poklonnaya Gora. The area includes large Stalin-era residential blocks in the downtown section and elite governmental residential compounds around the Kutuzovskaya metro station.

Design
RGI’s current design for the Victory Park Development entails a new 10-storey hotel and residential building with a gross area of 25,000 sq.m. comprised of 200 hotel rooms and approximately 8,000 sq.m of sellable residential space with approximately 133 parking spaces.

The hotel is designed to include all common amenities and facilities of a modern, business hotel and will meet the design standards of most international hotel operators.

Status
The current proposed development plan for Victory Park is based on RGI’s ownership of the building currently occupying the site and the possession of a long-term land lease. The project is currently in the pre-design stage. The Company’s next step for the development is to receive GPZU. The Company expects to complete the project to a shell and core standard during 2012 assuming that the necessary financing for construction is organized and the remaining design and construction permissions are obtained on a timely basis.

Strategy
RGI’s strategy for Victory Park is to sell the residential part and engage a branded hotel operator and hold the hotel part thereby generating a source of recurring income for the Company, although RGI would also consider selling hotel outright under appropriate market conditions either before or after the project is completed.