Financing for St. Petersburg development

22 September 2014

MirLand Development Corporation plc

("MirLand" or the "Company")

MirLand secures further construction financing from Sberbank for the fourth phase of the Triumph Park development in St Petersburg

MirLand, one of the leading residential and commercial property developers in Russia, announces that its wholly owned subsidiary Petra 8 LLC ("Petra") has entered into a new loan agreement with Sberbank of Russia ("Sberbank" or the "Bank"). The Bank will provide a non-revolving credit line of up to US$87 million (the "Loan") to finance the fourth phase of 1,244 apartments at MirLand's "Triumph Park" major residential development in St. Petersburg.

The Loan will provide approximately 75% of the expected fourth phase construction cost, with the balance financed from sale proceeds, and fulfils the outstanding funding requirement for this latest phase of the project. It will be provided to Petra in tranches over the next three years, and will be secured by way of mortgage, charge, pledge and other appropriate security interests for the benefit of the Bank and entered into by Petra and the Company. The Loan principal will be available for 35 months and the Loan will mature in four years. The Loan bears a fixed Rouble annual interest rate of 11.9% and is to be paid quarterly, in addition to other fees set out in the loan agreement, and is in addition to three facilities previously granted by the Bank to Petra, the outstanding balance of which, to date, is approximately $5 million.

Marketing is currently underway for phase two and three of the project with total sales proceeds to date of US$150 million.

Triumph Park St. Petersburg offers high-quality, competitively priced housing in the city's strengthening residential market. Situated on a well located 40 hectare site, the scheme is one of the few large scale developments in the city close to major transport links. The development is the first eco-residential complex in St. Petersburg certified by BREEAM, the world's leading assessment organization of green and sustainable building in St. Petersburg. Its design features will ensure reduced CO2 emissions by using ecologically friendly construction materials and energy efficient design. The project will also use water purification filters and high speed eco lifts certified according to ISO 14001, and offers a diverse range of apartment sizes and fit outs aimed at appealing to a wide range of purchasers.

The total net sellable area of the fourth phase of the project is approximately 60,600 square metres with approximately 1,300 square metres of commercial space. Physical completion of the fourth phase is scheduled for Q2 2017.

When the entire development is finished in 2020, Triumph Park will comprise over 9,000 apartments, approximately 58,000 square metres of retail space, 60,000 square metres of offices and incorporate a range of public amenities such as kindergartens, schools and parks.

Commenting on the progress of the project, MirLand's Chairman Nigel Wright said:

"Triumph Park is a highly successful long term residential development, which is continuing to attract new home owners and businesses, creating a growing community. Sberbank has been a strong partner to MirLand over the past few years, financing a number of our projects. We are delighted to be working with them again and value highly our relationship with the bank."

For further information, please visit www.mirland-development.com, or contact: