XXI Century To Attract USD 250-300 mln for Real Estate Funds

XXI Century Investments (XXIC LN: N/R) Chairman Lev Partskhaladze said that the company is planning to create a USD 250-300 mln worth investment fund to finance several of its real estate projects. The money is to be raised by the end of the year. In the future, XXI Century Investments is planning to create several real estate funds, according to Partskhaladze. In separate news, XXI Century announced that it will spend over USD 160 mln to build a cottage district in an area outside of the Ukrainian capital, Kyiv. Construction is expected to begin at the 55.5 ha site in 2008, and will include the building of housing, schools, sport facilities, restaurants and other units. Andriy Gostik: Currently, the sources and structure of financing required for the real estate fund are not clear, given the company still needs to finance its existing project portfolio. It is hard to say if the company will be able to efficiently combine its core activity, classic development, with a new one, fund management. We are cautious on the company’s initiative.