Belarusian officials are busy finding new investors for a large construction project in Minsk.
The Minsk City Executive Committee continues talks with potential investors that could take over the construction of Minsk City, a large residential and office district in the Belarusian capital, told Siarhiej Radaman, the deputy chairperson of the Committee.
He revealed that the Minsk authorities were in talks with Russia's Inteco and B&N Bank, as well as with a Turkish company that was ready to invest up to four billion Euros in the project, and companies based in China, Iran and Qatar.
“No final decision has been made so far,” the official said.
It was noted that Minsk authorities and Itera Group had agreed on the terms of the Russian company's withdrawal from the project.
“We have calculated the entire cost and found a solution that will allow the investor to quit the project without losses together with the investor,” he said.
Itera Group is expected to construct a total of eight residential buildings and renovate an office building before pulling out of the project.
Aliaksandr Lukashenka ordered the termination of the Belarusian government's contract with Itera Group because of the company's failure to launch the ambitious project during more than three years in February 2012.
Previously, Itera Group addressed Belarusian authorities to postpone the project deadline.
Itera Group had originally planned to spend $5.1 billion on the project and expected sales revenues to total $6.8 billion, but due to a slump in the real estate market the projected cost of the project had been revised downward to $2.5 billion and the projected revenues to just $2.2 billion. As a result the project will prove unprofitable for the company unless it is given more time to wait for the real estate market to pick up.
Itera has built four apartment buildings in the district and managed to sell just 75 percent of the apartments.
The Minsk City district is to be built on sight of the Minsk 1 airport and the Minsk Aircraft Repair Works.
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