Deutsche Bank AG will finance the $600 mln reconstruction of the Moscow Hotel, a Stalin-era building that overlooks Red Square in the center of the Russian capital.
The five-star hotel will be the first Russian project operated by Four Seasons Hotels Inc., Deutsche Bank said today in an e-mailed statement. The 183,000 square-meter (2 million square foot) project also includes offices and a shopping area, the Frankfurt-based lender said. The hotel's owner may later sell shares on an international exchange. „Deutsche Bank's strategy in Russia includes special attention to one of the most promising sectors, real estate,” Yuri Soloviev, head of global markets at Deutsche Bank Russia, said in the statement. Demand for property in Russia is rising as the economy expands for a ninth straight year. Construction of a Ritz-Carlton hotel 200 meters from the Kremlin, led by Capital Partners, an international private equity group, was finished in December. Deutsche Bank is organizing funding for $1 billion of real estate projects in Russia this year, Interfax reported today, citing Soloviev. (Bloomberg)