DS Law.Attorneys structure the financial activities of an important multimillion construction project

Issue
of the project: Structuring of financial and economic activities of
construction, leasing and subsequent
sale of the shopping center

Value:
1 billion Rubles ($28,500,000+) – The estimated cost of the project after commissioning

The project: Additional investments were attracted at the stage
of the construction of the
shopping center, the construction of which was financed by investments of individuals
made through the company customer-builder.
The attorneys were tasked with developing
a framework of financial and economic activity (FEA), whose
purpose was to bring the cost of
the project in the medium term (3-5
years) to a high indicator value and subsequent withdrawal from the project through direct purchase and sale of properties.
The implementation of the structure
was complicated by the need to introduce
new PCD investors, the change in the title of the owner of
the asset and capital costs, taking
into account the investments made
​​earlier in the form of loan
capital, as well as the elimination
of the consequences associated with the changes made in the interaction with potential tenants.
The attorneys of DS Law carried out a
comprehensive research and offered
the best options for structuring the PCD with the tax
burden, organization of costs and legal risks at all stages
of the project. The attorneys also developed a financial and economic model of the planned tax revenues on all proposed scenarios, based on
which, taking into account the designated
tax and civil legal
risks, the most attractive way
of doing business was selected.
Also taking into account the tax and civil legal
risks an investment contract was developed and put into
action with  the
project lawyers of DS Law remotely monitoring the project.