Germany's HYPO Real Estate International bank has lent $300 million to the Multinational Logistics Partnership (MLP) for two warehouse construction projects in Russia.
It is the biggest loan made by a Western bank to build commercial real estate in Russia. The money will be used to build two warehouses, each with an area of 200,000 sq m. The MLP Podolsk construction project was launched several months ago 17 km south of the Moscow Ring Highway (MKAD). The Utkina Zavod project was launched outside St. Petersburg in July. The MLP holding company, which was founded in 2004, plans to build warehouses with an aggregate area of about 1.5m sq m by 2010. Renova Capital, the Ukrainian Privat group and structures associated with Alexander Mamut each hold approximately 30% in MLP. In late 2005, HYPO Real Estate had already lent $150m to MLP for its first Russian project: the Leningrad Terminal, with an area of about 200,000 sq m.