Packer Plada expanding to Russia

Half a year after being purchased by Lev Leviev's Africa Israel (TASE: AFIL), Packer Plada is entering its parent company's home turf.

Russia, that is. Yesterday Packer Plada signed an agreement to buy an industrial complex on 260 dunams of land in the third ring of Moscow.

It is carrying out the deal through a wholly owned subsidiary registered in Cyprus, Packer Plada said. The deal is with the Russian company Cigma Trade.

Packer Plada is buying 100% of a company called Koa Gas, also registered in Russia. Its stated purpose is to expand internationally.

Koa Gas owns a facility that produces building materials and infrastructure in the greater Moscow area. Packer Plada estimates that ultimately buying the complex and developing it cost it around $50 million over two to three years.

The asset includes buildings and infrastructure, including a train track. It also has a power production plant for its own use, as well as water wells and equipment, Packer Plada said.

It is paying $22 million altogether, of which all but $350,000 is in the form of a shareholders loan to Koa Gas, which will be using the money to pay off loans from its prior owners.

Packer Plada explains that it means to better the complex, erect new buildings and to rent out parts to third parties. It has handed over $11.5 million up front.

	This is not a picture of the property mentioned herein.