SINGAPORE (Thomson Financial) - Southeast Asia's biggest property developer CapitaLand Ltd said Friday it has proposed to take up a 10 percent stake in the completed and stabilized assets of Russian logistics property developer, Eurasia Logistics, instead of a direct 10 percent stake in the developer as initially announced in April.
'This is subject to the creation of a special purpose vehicle, the assessment and concurrence of the valuation of the properties, and securing of all requisite approvals,' CapitaLand said in a statement.
Eurasia is expected to have 700,000 square meters of class A logistics warehouses in Moscow and Ekaterinburg by year-end.
By 2010, Eurasia plans to have a network of 20 class A industrial parks spanning the main hubs of Russia and the Commonwealth Independent States, which will make it the largest commercial property developer not only in Russia but also in Europe.
Eurasia Logistics is evaluating CapitaLand's proposal, which will enable the Singapore-based developer to include logistic space, for the first time, into its portfolio of properties worldwide.
'CapitaLand will also look to assist in the creation of a fund or REIT (real estate investment trust) to inject these properties (into) at the appropriate time,' the company said.
(1 US dollar = 1.44 Singapore dollars)
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