| Investment case. Privately held investment fund Caspian Trading is carrying out an investmnt project right in the heart of the Russian capital on the Moscow river. The project foresees construction of about 50 landing-stages with a chain of floating restaurants, hotels, retail outlets, entertainment centers and offices. The master plan allows for construction of summer verandas in the open air and enclosed spaces with fireplaces for those who stay in winter. Besides, it foresees improvement of the premises – construction of drives and parking lots. Due to its uniqueness, the project has no direct competitors. It is designed primarily for young affluent Muscovites as well as foreigners coming from abroad. |
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| Finance. We estimate that realization of the project would require some $30 mln, of which $20 mln account for the acquisition of the territories and obtaining approvals and licences, with the rest of the sum falling to the share of construction itself. Taking into consideration the large number of objects, the life span of the project is estimated roughly at 3-4 years. During that period we expect steadily increasing cash flows to the project, as new objects come into operation. Fully invested, the project is expected to generate an annual net income of $8-10 mln, extending thus the payback period to six years. |
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| Project progress. Up to now, the fund has worked out the business plan and the master plan, performed the project’s valuation, concluded the talks with the city authorities and obtained titles for the sites as well as relevant licences. Besides, it has attracted co-investors to start works on three objects as early as in mid 2007. At this stage we look for strategic investors to jump into the project and finish the works on it. This project is really safe investment for every private investments - so do not hesitate and contact us for more information. |
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