OREANDA-NEWS. Sistema-Hals, one of the largest diversified companies on the real estate market in Russia and the CIS, announced signing of a three-party agreement between the Astrakhan region, City of Astrakhan and OJSC Sistema-Hals on the implementation of the "New City Center" project in Astrakhan worth approximately USD 2 500 million.

As reported by Sistema's information service,"New City Center" will consist of a multipurpose complex in the historical center of Astrakhan on a 200-hectare site, including residential and office buildings, retail, leisure and hotel facilities.

The overall construction site is around 2.8 million square meters, of which 1.5 - 1.8 million square meters will be designated for residential buildings. The new district will preserve the historical and public profile of the city center.

"The regional expansion and entry onto rapidly growing markets is part of the business strategy of Sistema-Hals. We see the major potential in the economic development of the city Astrakhan. The expertise of Sistema-Hals in the field of complex town-planning solutions will contribute to the effective implementation of the current project," said Sistema-Hals Vice President Igor Kasheyev.

Sistema-Hals was the first Russian development company to list on the Main Market of the London Stock Exchange. The company's shares are also traded on the Moscow Interbank Currency Exchange (MICEX) and the Moscow Stock Exchange. The AFK-Sistema group owns 71.1% of shares in Sistema-Hals, while 18% of the company's shares have been floated. Sistema-Hals is one of the largest real estate companies in Central and Eastern Europe in terms of market capitalisation.