MI Developments Inc. (MIM) is in talks with Magna International
Inc. (MGA) about playing a role in developing and building three
proposed Magna plants in Russia.
The plants would be Magna's first in that country.
MI said its specific role, if any, hasn't yet been determined,
but could include financing Magna's acquisition, development and
construction of the plants and potentially acquiring the facilities
in a sale-leaseback transaction at a later date. It said its
Austrian-based development and construction personnel have been
consulting for Magna on the proposed projects.
As reported, Magna has teamed up with Russian auto maker GAZ
(GAZA.RS) and state-controlled OAO Sberbank (SBER.RS) to buy
General Motors Corp.'s (GM) German unit, Adam Opel GmbH, and its
U.K.-based sister brand, Vauxhall. Magna is reportedly aiming to
sign a preliminary agreement for the Opel deal on July 15.
MI said two of Magna's planned projects are in the St.
Petersburg area and the third is in Kaluga, about two hours south
of Moscow.
Magna is said to be betting on the Russian market for Opel's
long-term growth. By 2014, Opel is expected to sell just 5% of its
new cars in Russia, but Magna sees major potential in the region,
according to a Magna document seen by Dow Jones Newswires earlier
this month.
MI is a real estate operating company with a predominantly
industrial rental portfolio leased primarily to Magna.
-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com