Eliezer Fishman's Russian development arm, Mirland Development Corporation plc (AIM:MLD; TASE: MRLD.B1) notified the London Stock Exchange on Friday that the Moscow city government has terminated the lease agreement for the company's Skyscraper commercial office project in the city. Mirland subsidiary Real Service LLC was leasing a 900-square meter site for the project.
The Moscow Government claims that Mirland is not in compliance with the terms of the lease agreement as it has not taken steps to develop the Skyscraper project as required by the lease and applicable law. The notification stipulates that termination of the lease agreement will take effect one month from the date of the notification, and subject to a hearing and the final verdict of such legal proceedings.
Mirland is held through Fishman Holdings real estate subsidiaries Jerusalem Economy Ltd. (TASE:ECJM) (JEC) and Industrial Buildings Corp. (TASE: IBLD). The company valued the Skyscraper project at $36.1 million at the end of September 2012.
Mirland said that it was evaluating its legal options and that it intends to submit a rigorous objection to the purported termination, but that it cannot assess the likelihood of its success in the legal procedings.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2013
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