July 23. LSR Group, the largest developer and construction materials producer in North-Western Russia, has become an important player in the commercial property segment in Moscow. In line with the company's announcement, Mosstroyrekonstruktsiya (MSR), part of LSR group, has signed a preliminary agreement with Kronstadt Business Center, which owns a large area of land located on Golovinskoe Highway in Moscow. In this area, the company will build a class A business center with a total space of 360,000 sq.m, including 224,000 sq.m of office space. Other developers, such as MR Group and Central Properties, will also participate in the project. MSR will defray primary expenses for project implementation and gain control after its full implementation. Investments into the project are estimated at USD 800 mn. The construction will be launched in 1Q 2009. Until recently, MSR has had only two projects in Moscow in its project portfolio: the business centers in Sadovnicheskaya Street and Leningradskoe Highway.