AFI Development will build 500,000 square meters of housing in Moscow

Lev Leviev's company wants to make money by managing construction projects.
AFI Development began construction of a large multifunctional residential complex "Lilac Park" on the territory of the industrial zone at Tagil Street, told the "Vedomosti" two brokers working in the area. On the site of the architectural workshop "Sergey Kiselev and Partners", which developed this project, it is said that its total area will be 503,000 square meters. m.

True, the investor of the project there indicated JSC "MetroMash" (specialized in repair and manufacturing of equipment for the Moscow metro, is now engaged in leasing equipment and real estate). Today, as follows from the design declaration of the "Lilac Park", the construction of the first stage of the complex for 55,000 square meters is underway. m.

The request to "MetroMash" was left unanswered, the employee of the company on the construction of the "Lilac Park" advised to apply to AFI Development. Her representative said only that the company acts as a fee-developer of the project, that is, it manages it for a fee. Other details, he said, will be disclosed in mid-September.

AFI Development specializes in the construction of housing and commercial real estate. Its main owner is the Israeli diamantaires Lev Leviev. The company's portfolio includes more than 20 projects with a total value of $ 1.4 billion. Among them, the retail and entertainment complex Afimoll City (282,100 sq m) in Moscow City, the Odinburg residential complex (677,000 sq. M.) In Odintsovo and others.

The construction of the "Lilac Park" will need at least 30 billion rubles., Said the chairman of the board of directors of "Best New Building" Irina Dobrokhotova. With her agree the managing partner of the "Metrium" Maria Litinetskaya. Given that the project is in the middle of the industrial zone, according to Dobrokhotova, the developer will have to start building several lines of the complex at once to create comfortable conditions for the inhabitants of the first buildings, and this will require additional costs.

The main advantage of the new complex is its price, says Litinetskaya. Now the average cost of apartments in the "Lilac Park" is about 116 000 rubles. for 1 square. m, while the nearest competitors it is higher - from 147 000 rubles. for 1 square. m in the "Level Amur" (developer - Level Group Vadim Moshkovich) and from 140 000 rubles. for 1 square. m in the "Transformation" (Ingrad). True, both competitors are closer to the subway, draws the attention of Dobrokhotov.

"Lilac Park" is the first such residential project by AFI Development. According to Litinetskaya, fee-development is very common among Western companies, while in Russia such examples of cooperation among market participants are less common. However, in an unstable economic environment, such a service from large developers is becoming more and more in demand, she continues. "If one developer has land in the property, he can attract a fee-developer who will be responsible for everything from the development of the concept of the project to putting the facility into operation," argues Litinetskaya. She adds that fee-development also allows non-core players to avoid mistakes in the development of projects.