A general shareholders meeting of Ocif Investments and Development Ltd. (TASE: OCIF) today approved the purchase of land in Moscow owned by the company's controlling shareholder Arkadi Gaydamak for $100 million. The 219-acre lot is owned by OOO StroyLider, a private company wholly owned by Gaydamak.
StroyLider paid $25 million for the land in April 2007; Gaydamak is making a 300% return on investment in less than a year. The lot is located in the Leninsky district in a Moscow suburb on the road to Kiev. The lot is zoned for a 250,000-square meter logistics center, 40,000-square meter office bloc, and a 270-room hotel.
The deal has been shrouded in controversy since June 2007, following Gaydamak's acquisition of Ocif. At the time, Ocif announced that it was in negotiations to buy land in Russia for $500-700 million from what it called "a third party". In October, the company announced additional negotiations to buy land in Russia from Gaydamak for $100 million. The structure of the two deals was very similar, raising suspicion that it was the same deal under a different name. In December, Ocif disclosed this fact, and that the "third part" was the company's controlling shareholder.
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2008
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