Fishman Holdings' Russian development subsidiary Mirland Development Corporation plc (AIM:MLD; TASE: MRLD.B1) has abandoned two development projects in Moscow, Sokolniki and Nemchinovka, after terms in the agreement with the company's partner were not met.
Mirland's partner has repaid the company in full the $14 million loan, plus interest, that Mirland had extended to it. Mirland added that it will use the $100 million intended for these projects for other projects currently under development.
Mirland CEO Moshe Morag noted that the Sokolniki and Nemchinovka projects comprised less than 7% of the company's portfolio on an net asset value basis and their termination would not affect on the company's profitability in 2008. He further noted, "We continue to make good progress throughout the remainder of our portfolio, which comprises 13 significant ongoing projects which, on completion, will provide approximately 1.27 million square meters of office, retail and residential property."
Fishman Holdings controls Mirland through Jerusalem Economic Corp. (TASE:ECJM) (JEC), Industrial Buildings Corp. (TASE: IBLD), and Darban Investments Ltd. (TASE: DRBN).
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2008
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