President Nizhegorodstroy LLC V.A. Chernyshev

PROJECT DECLARATION

Construction of residential housing № 4 (as per plot plan) with adjacent nonresidential premises (Second construction stage – Block 2) in Literaturnaya street, located in existing dwelling zone boarded by streets: Oktyabrskoy Revolutsyi, Iskry, Chongarskaya, LIteraturnaya, Mendelleva in Kanavinsky district of Nizhny Novgorod.

1. Information about developer 1.1 Name, address, «Nizhegorodstroy» LLC working schedule Legal address: 15, Bolshaya Pokrovskaya street, Nizhny Novgorod, 603005.

Actual address: 15, Bolshaya Pokrovskaya street, Nizhny Novgorod, 603005.

Tel.: +7 831 4337809, +7 831 4331978, fax +7 831 4339898, e-mail: [email protected]

President – Chernyshev Vyacheslav Andreevich Chief Accountant – Zakirova Zelhidzha Khamzevna Working schedule 8:00 am to 5:00 pm, Lunch break 12.00 – 13.00

1.2 State registration Certificate of State Registration of a Legal Entity, Series НРП-Н № 6952, issued by Nizhny Novgorod Registration Chamber of Municipal Estate Management Committee of Nizhny Novgorod City Administration. Date of registration October, 27 1992, registration number 2674; Certificate of Legal Entity registration with a Tax Authority at its location in the Russian Federation, Series 52 № 0005291, date of registration November, 11 1992 TIN (tax payer identification number) 5260007487, KPP 526001001.

1.3 Charter members - LLC «Promgrazhdanstroy» Director: Grachev Ivan Alexandrovich; - JSC FSK “Povolzhye” President: Lozhkin Alexander Nikolaevich; -JSC “Concrete slabs factory № 1” General Director: Burganov Sergei Anatolyevich; - JSC “Verkhnevolgoelectromontazh-NN» General Director: Fofanov Boris Ivanovich - LLC “SMU-1 Avtozavodstroy” Director: Chesnokov Vladimir Valentinovich; - JSC Construction and Erection Trust “Neftezavodstroy General Director: Kitaev Alexander Nikolaevich; - LLC Commercial and Construction Company “Otdelstroy” Director: Tsalolikhin Dmitry Yakovlevich; - LLC “Nadezhda” Director: Kolobov Valery Mikhailovich; -LLC “Otdelochnik” Director: Makarov Vyacheslav Vasilievich; - JSC “Promiks” General Director: Elagin Valery Mikhailovich; - JSC “Zhilstryresurs” President: Tsarev Vladimir Mikhailovich; - JSC “Zavolzhsky wood processing factory’’ Director: Kuznetsov Pavel Alexandrovich; - JSC “SMU-7” General Director: Averkin Nikolay Vasilievich -LLC “Specialized construction and erection bureau № 8” Director: Safronov Sergei Nikolaevich; -LLC “EFTO” Director: Efremov Eugeni Petrovich; - LLC Production and Trade Company “Trust № 1 Stroygaz” General Director: Pushkin Vasiliy Evegenievich; - LLC SMM “Stroygaz” General Director: Terentyev Yuri Arkadievich; -JSC “Borsky Silicate Factory” General Director: Lebedev Pavel Grigorievich; - JSC “Promsvyazmontazh’’ General Director: Yurasov Valery Yakovlevich; - Production Cooperative “PMK-2” Chairman: Domotsky Alexander Afanasievich; -JSC “Verkhnevolglsantekhmontazh” General Director: Tsvirkunov Anatoly Petrovich; - LLC “Avtostroy” Director: Pupkov Vladimir Nikolaevich - LLC SMP “Promstroy -4” Director: Garbuz Naum Lvovich - LLC SMP “Promstroy -6” Director: Shalyavin Alexander Nikolaevich - LLC “Kvant+A” Director: Blinov Alexander Konstantinovich - JSC “TOIR” General Director: Markov Igor Lvovich

Charter Members with 5 and above percent of votes in the managing body: - Pavlovskaya Galina Petrovna – 25.1 % - Baranov Dmitry Ivanovich – 16.85 % - Gorshenin Roman Vladimirovich – 16.85 % - Starikov Nikolay Stepanovich – 8.6 % - Chernyshev Vyacheslav Andreevich – 8.6 % 1.4 Commissioned projects 2005 : Kanavinsky district: - Residential housing: 45, Oktyabrskoy Revolutsiy street, 10-storey, 133-apartment; – scheduled and actual commissioning – June 2005;

2006 : Kanavinsky district: Engineering and laboratory building, № 2 Kanavinskaya street, – scheduled and actual commissioning – December 2006;

Kanavinsky district - Residential housing: 45, Obukhova street, 10-storey, 128-apartment, second stage, scheduled and actual commissioning – February 2007; - 7,bld 2,Meschersky boulevard, 12-storey, 120 apartments – scheduled and actual commissioning – December 2007; Nizhegorodsky district : - Residential housing: 30, 3-d Yamskaya street, 7-storey, 49-apartment – scheduled and actual commissioning – March 2007; Leninsky district : - Residential housing: 44, Lenina prospect, 10-storey, 50-apartment, first stage; – Scheduled and actual commissioning – June 2007; Moskovsky district: -50, Narodnaya street, 10-storey, 189-apartment, first and second stages. Commissioning of the 1-st stage as per schedule - March 2007, actual commissioning term of the 1-st stage – May 2007; commissioning of the 2-nd stage as per schedule - May 2007, actual commissioning of the 2-nd stage – March 2007.

1.5 Type of the licensed Construction is carried out on the basis of license for construction of buildings activity and structures of I and II responsibility class according to the state standard, including functions of customer-developer № ГС-4-52-02-27-0-5260007487- 009276-2 dated May, 26 2008 issued to “Nizhegorodstroy” LLC on the basis of order of Federal Agency for Construction, Housing and Utilities № 168, dated May, 26 2008. The license is valid till May 26, 2013. Issuing Body - Federal Agency for Construction, Housing and Utilities. Quality Management system of “Nizhegorodstroy” LLC is certified according to GOST Р ИСО 9001-2001. Certificate of compliance К № 05240, registration number РОСС RU.ИК59.К00007, date of registration 13.12.2005, issued by Certification Body of quality management systems “EURO-SOYUZ CERT” № РОСС RU.0001.13ИК59. The issued document certifies: Quality Management System is applicable to construction of industrial and civil facilities. 1.6 Information of financial Financial result as of the date of Declaration issue: profit for 9 months of 2009 result of the current year, – 2010 thsd. roubles., amount of accounts payable – 437732 thsd. roubles. the amount of accounts payable on the date of Declaration publishing. 2. Information of construction project 2.1 Aim of the project. Construction of residential housing № 4 (as per plot plan) with adjacent nonresidential premises (second construction stage – Block 2) in Literaturnaya street, located in existing dwelling zone boarded by streets: Oktyabrskoy Revolutsyi, Iskry, Chongarskaya, LIteraturnaya, Mendeleeva in Kanavinsky district of Nizhny Novgorod.

2.2 Stages and terms of Launch of construction: III quarter 2007 project realization Completion of construction: IV quarter 2009

2.3 Permission for № RU 52303000-27/557р issued December 04, 2009, by Nizhny Novgorod construction. Administration, valid till February 13, 2012. 2.4 Rights to construction Contract of land lease № 18-1287с dated May 13, 2009 concluded with site. Ministry of Government Property and Land Resources basing on Instruction № 283-р of Nizhny Novgorod region Government, registered in Federal Registration Agency for Nizhny Novgorod region of June, 29 2009, registration number 52-52-01/079/2009-063. Contract of ground lease is valid till February 13, 2012. Ground square - 10151.00 m2, Cadastral number 52:18:0030176: 14. Total structural volume -14937.5 m3.

2.5 Location and Construction site is located in Kanavinsky district of Nizhny Novgorod in description. existing dwelling zone boarded by streets : Oktyabrskoy Revolutsyi, Iskry, Chongarskaya, LIteraturnaya, Mendelleva.

Second stage of construction includes one entrance. Territory adjacent to the construction site is improved and finished: walks and access roads are paved with asphalt, playing grounds as well as grounds for various purposes are planned. Land free from buildings is planted with trees, grass and shrubs. 2.6. Specification Number of floors – 10 Total number of apartments – 50; 1-room apartment, square 37.4 m2. – 10, total square– 374.0 m2. 1-room apartment, square 62.0 m2. – 1, total square – 62.0 m2. 2-room apartment, square 55.9 m2. – 10, total square – 559.0 m2. 2-room apartment, square 69.1 m2. – 1, total square – 69.1 m2. 2-room apartment, square 55.1 m2. – 1, total square – 55.1 m2. 2-room apartment, square 55.7 m2. – 9, total square – 507.4 m2. 2-room apartment, square 61.6 m2. – 9, total square – 554.4 m2. 3 c, square 85.0 m2. – 9, total square– 765.0 m2. Totally: 1- room apartment – 11, total square – 436.0 m2. 2- room apartment – 30, total square – 1745.0 m2. 3- room apartment – 9, total square – 765.0 m2. Square of residential housing – 3874.6 m2. Total square of apartments – 2946.0 m2. Number of floors: 10; Number of entrances: 1;

Type of construction material - brick

Foundations – strip type, assembled from reinforced concrete slabs; Wall material – silicate brick; Facades’ finishing – white and color brick (manufacturer: Borsky silicate Brick Factory), basement is finished with decorative brick – ‘Besser”. Partition walls – gypsum-perlite. Overlapping – assembled reinforced concrete slabs. Stairs – assembled reinforced concrete runs and resting space with metal face beams. Roof: flat, from assembled reinforced concrete slabs with internal water drainage with insulation coating of “Isoplast” double layer. Elevators: 1 passenger elevator; Garbage chute - yes; Loggias and balconies – in every apartment; loggias are glassed-in. Inter floor height – 2.8 m, heath of ceiling in apartments – 2.5m.

Heating: source – boiler station, attached to the house № 45 in Oktyabrskoy Revolutsyi street, Heating elements – convectors “Universal –C”; Apartments are commissioned in the following conditions: Outer walls: brick, insulated from inside; Internal brick walls – plastered, without wall paper and putties, without surfacing or ceramic tiles ; Ceiling – joint pointing; Sewage, hot and cold water supply – standpipes for connection of plumbing items (without branches for connection and installation of plumbing items themselves); installation of water cocks and counters for hot and cold water lines is considered;

Electric power supply - running of electric line into apartment, installation of counter, hidden line distribution with installation of switches and sockets;

Telephone – telephone line routing without subscriber number and distribution inside apartment; Heating and hot water supply – distribution of pipings with installation of heating elements, connection to heating source; Doors - house door and door to loggia are made of wood (inside doors are not installed); Windows – wooden with triple glass, outside painting; Floor – cement screed, without finished coating; Gas supply – installation of gas supply system up to connection point (without installation of a stove), installation of counter is considered;

Television – cable running from antenna via general conduit.

2.7. Functions of There are no nonresidential premises. nonresidential premises. 2.8. Content of general Inter-apartment corridors, elevators, stair runs and resting spaces, technical property of the housing attic, basement and house maintenance utilities, excluding attached that will be owned by share nonresidential premises, bearing and fencing structures, internal and a part of participants of external piping, territory improvement. construction. 2.9. Estimated term of IV quarter of 2009. permit issuing for commissioning of the house. 2.10. Results of the State Approval № 0794-09/УГЭ-0859 for detail project of residential housing № 4 Expertise inspecting ( as per plot plan) with adjacent nonresidential premises (second construction design documentation. stage – Block 2) in Literaturnaya street, located in existing dwelling zone boarded by streets : Oktyabrskoy Revolutsyi, Iskry, Chongarskaya, LIteraturnaya, Mendeleeva in Kanavinsky district of Nizhny Novgorod Issued by Russian Glavgosexpertise Agency for Nizhny Novgorod region upon results of design documentation expertise and civil-engineering survey. 2.11. List of state and Customer (developer) –“Nizhegorodstroy” LLC. municipal authorities and Operating entity – Accommodation Condominium or LLC ZKU “Oktyabrskoe” ; organizations, General Designer – State Enterprise of Nizhny Novgorod region representatives of which “Orgtechstroy”; participate in the State sanitary supervision – Center of Sanitary and Epidemiology Control of commissioning. Nizhny Novgorod region; GosPozhNadzor – Main Agency of Ministry for Civil Defense, Emergency Situations and Liquidation of Natural Hazards Consequences for Nizhny Novgorod region; Gosarchstroycontrol – Inspection of State construction supervision of Russian Federation for Nizhny Novgorod. General Contractor - LLC “Construction and erection company Stroygaz” 2.12. Estimated cost of 70000000.0 (seventy million) roubles. construction. 2.13. Risks The order for estimation of financial risks is defined by the authorized federal executive agency (article 23, item3, Federal Law № 214-ФЗ dated 30.12.2004 «On share participation in construction of multiple-dwellings and other estate objects and about amendments to several regulations of Russian Federation”. Production risks. Risks related to sharp price changes on estate market, increase of materials and equipment cost, increase of bank interest rates. 2.14. Method of loan Pledge of rights for leasing a ground site and housing under construction is security arranged according to article 13 of Federal Law 214-ФЗ dated 30.12.2004. «On share participation in construction of multiple-dwellings and other estate objects and on amendments to several regulations of Russian Federation”. 2.15.Other contracts and agreements for No, but involvement of credit resources is not excluded. involvement of funds for construction of the housing 2.16.Company providing General Contractor - LLC “Construction and erection company Stroygaz” main construction and Legal address: 2 Smirnova street, 603016 Nizhny Novgorod erection and other works General Director: Terentyev Yuri Arkadyevich President “Nizhegorodstroy” LLC V.A. Chernyshev

Approved by:

Vice president for finance – Chief accountant Z.Zakirova

Lawyer V. Krasnova

Head of Marketing Department L.Molkova

Acting as supervisor of production control N.Denschik

Project manager N.Ilichova