OREANDA-NEWS. January 10, 2007. Sistema-Hals (LSE, MICEX, RTS: HALS), a leading diversified company in the Russian and CIS real estate market, and  Apsys, a leading European developer and asset manager specialized in the real estate retail industry, announced the signing of a long term strategic partnership agreement to co-develop and manage retail projects in Russia, reported the press-centre of Sistema-Hals.

Pursuant to the agreement, Apsys and Sistema-Hals will each control 50% of a joint venture, which will carry out retail development projects jointly selected by the parties.

The joint venture's first investment is the acquisition from Sistema-Hals of 100% of the shares of the company holding Leto City, a super-regional 2 storey, retail & entertainment center under construction with approximately 75,000 m2 GLA located on a 17,7 ha site in Pulkovskoye Schosse to the South of St. Petersburg.

"This partnership will contribute to the high-grade growth of our retail activity, through a combination of  Apsys' recognized expertise in the development, leasing and management of retail properties, and the strong track record of Sistema-Hals as a leader in the Russian real estate development market," said Felix Evtushenkov, President of JSC Sistema-Hals.

"This partnership is our first investment in Russia, and we are happy that this important step is made with Sistema-Hals. We believe that the complementary nature of the strengths of our two companies will ensure the success of this joint venture and will enable it to build a leading retail portfolio in Russia", said Maurice Bansay, President of  Apsys.