A development subdivision of the gas company ITERA is going to invest $1 bln. in real estate in Moscow within the next five years and to develop the business with construction of property for sale in Russia, and then to carry out an IPO. Managers of the company hope the company will take a leading position in the market.

Itera Group (via Itera Holdings Ltd. of Cyprus) owns ITERA Oil and Gas Company (ITERA OGC) of Russia.  The capital assets of ITERA OGC include a 49% stake with Purgaz and a 79% stake with Sibneftegaz. ITERA’s revenue (under RAS) was RuR 30.8 bln., and its net profit was RuR 1.1 bln in 2005.

Itera-Invest-Stroy was registered in the beginning of the year, - Alexander Pankiv, deputy general director, told the Vedomosti. According to Valery Korotkov, director of IteraInvest Holding, Itera-Invest-Stroy is a 100% affiliate of IteraInvest Holding. Pankiv promises the company will invest over US$ 1 billion in real estate within the next five years. "We are currently consolidating all real estate that belongs to ITERA international group of companies and are considering an IPO jointly with Renaissance Capital Investment Group", — says Korotkov. "We do not comment on the relationship with clients. This is ITERA’s right", — said Bob Foresman, deputy-chairman of the Renaissance Capital Executive Committee.

Experts are unable to assess the prospects of the company, because nothing is known in the market about Itera development projects.  "After the company is placed with an Exchange, it will take one of the leading positions by size and volume of work done at the development market of Russia ", — Korotkov hopes.  Itera-Invest-Stroy is working on four projects, now. The company is working to create a business-park at the territory of Russki Product (Russian Product) factory, which is inactive. According to Pankiv, shares of the factory were purchased in 2006. The enterprise occupies 3.5 hectares near Baumanskaya subway station and consists of a few detached houses with the total floor area of 38 000 square meters. "We shall turn them into class "B” offices, and construct about 25 000 square meters of additional floor area", — he says. Space in the second office center with the area of 12 350 square meters in Bolshaya Pochtovaya Street is being offered for rent.

A four-hectare site in the east of the capital city (occupied by a chemical enterprise Alpha-Plastic) is being considered for development, too. A Moscow construction complex officer confirmed the site belonged to Itera. According to Pankiv, this operational enterprise shall be re-located to Oryol Region. After the re-location and liquidation of the sanitary zone, the company may suggest constructing a residential estate there, - believes another manager of the company. Itera-Invest-Stroy is also at the verge of construction of country houses at a site of 180 hectares 14 km off Moscow  along Novorizhskoye road. The Bank for Foreign Economic Activity had approved of the loan of US$170 million, - they say in that bank.