VTB Bank has opened a USD 390 million credit line to Mospromstroy Group to help expand the company’s hotel business. The deal has been signed for seven years and includes refinancing of Mospromstroy’s foreign loans.
VTB has also increased the total credit limit of RUB 11.2 billion — set to finance Mospromstroy Group’s core business of residential and commercial real estate development — to RUB 20.1 billion.
«Mospromstroy Group is a reliable partner of VTB and has always met its obligations under previous agreements," VTB Senior Vice President and Head of the Development Projects Department Pavel Kosov said. «Lending to hotel developers is a promising business for the bank, which it has been actively expanding both in Moscow and in the regions, to diversify the credit risk in its construction portfolio. This and similar deals will certainly contribute to the development of the hospitality industry in general.»
The Main Directorate for Industrial Construction in Moscow (Glavmospromstroy) was created in 1972. In 1990, the company was reorganised and renamed Mospromstroy. Since its founding, Mospromstroy has been a leader in Moscow’s real estate development market.
Mospromstroy Group has built and owns a number of major hotels in Russia and abroad, including three four- and
Today Mospromstroy’s hotels have a combined capacity of 2,432 rooms. In Moscow alone, the total area of Mospromstroy hotels managed by major foreign brands is about 139,300 square metres, with 1,666 rooms in total, or about 11.7% of all quality hotel rooms in Moscow (according to the Moscow Committee for Tourism and the Hotel Industry). In addition, the Marriott Grand, the Marriott Royal Aurora, and the Hilton Moscow Leningradskaya make up a significant part of the