Level Group purchased the project for the construction of the residential complex “City in the Forest” in the Moscow region from VEB.RF

VEB.RF got rid of the legacy of RGI International Boris Kuzinets. The last asset from the company’s portfolio, the project for the construction of the residential complex “City in the Forest” in the Moscow region, was purchased by Level Group. The deal will allow the developer working only in Moscow to enter a new market.

Level Group, founded by ex-senator Vadim Moshkovich and his partner Kirill Ignakhin, bought from the VEB.RF-controlled ProGorod company a project to build a residential complex “City in the Forest” in the village of Otradnoye near Krasnogorsk in the Moscow region. A representative of the developer told Kommersant about this. VEB.RF confirmed the fact of the transaction.

The deal will include more than 80 hectares of land, Level Group clarified. The company will complete the construction of the residential complex and will also build new phases. Now, according to “Nash.Dom.RF”, 95.52 thousand square meters are being built in the “City in the Forest” project. m of housing, 86 thousand sq. m. have already been commissioned. m.

The Commonwealth Partnership estimates the cost of the transaction at 4–4.5 billion rubles.

Initially, the project was handled by the developer of the “golden mile” – RGI International of Boris Kuzinets. In 2014, the company partially came under the control of VEB.RF and was renamed Rose Group. “City in the Forest” is the latest project of the Rose Group. In 2021, the state company handed over the department store “Tsvetnoy” in the center of Moscow Bonum Capital. Ricci Partner | M&A Petr Vinogradov notes that VEB.RF does not independently engage in development projects. To implement the Slava complex on Leningradsky Prospekt, the state company hired MR Group as a fee developer, he recalls.

According to Nash.Dom.RF, Level Group is currently building 649 thousand square meters. m. of housing. Kirill Ignakhin, in an interview with the Vedomosti newspaper, estimated the developer’s revenue in 2023 at 85 billion rubles. According to the Unified State Register of Legal Entities, 41.38% of Level Group LLC is owned by Kirill Ignakhin, 4.21% by Alexander Merkulov, 3.41% by Elena Voronina, 51% by LLC Financial Resource, previously owned by Vadim Moshkovich. In March 2022, EU and UK sanctions were imposed on the businessman. Now the founders of “Financial Resource” are not disclosed.

Level Group has never had any projects outside of Moscow before. Earlier, Kirill Ignakhin said that the company wants to start building outside the Moscow Ring Road, but in a segment with a cost per square meter of over 200 thousand rubles. The developer will be able to restart the “City in the Forest” project and improve its economic efficiency, believes Timur Ryvkin, director of the residential real estate and land development department at Nikoliers. Level Group also has plans to expand to other cities, including St. Petersburg and Sochi, said Mr. Ignakhin.

According to Dataflat.ru, in March 2024, the demand for apartments in new buildings in the Moscow region decreased by 18% year-on-year, to 165 thousand square meters. m. Average prices for new housing in the region increased by 16%, to 198 thousand rubles. per sq. m.

Daria Andrianova