15 Elninskaya Street - Residential

Kountsevo Invest, ZAO (KIZ) had been formed by private investors in 1994 to undertake mainly residential development in Moscow and in 2000 Moscow City awarded KIZ the right to redevelop building plots in the Kountsevo area.

The commercial development at Elninskaya Street 15 was completed towards the end of 2003 - this luxury apartment development - called Emerald Valley - was largely pre-sold with all proceeds retained by KIZ.

The project was undertaken by Kountsevo Invest ZAO ("KIZ"), which was a joint venture between Sistema and AP interests. Both projects were also undertaken under a single initiative of the Moscow City government - Decree # 30-RP dated 14.01.2002.

The regeneration program referred to above relates to several quarters in the Western Administrative District of Moscow and its primary purpose is to improve the stock of public housing. A proportion of these new blocks are returned to City ownership but the developer is permitted to retain about 65% of the project for sale to the open market.