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HONG KONG, July 18, 2014--(PR Newswire)--

MagLev Agreement Reached between Gordon Atlantic, KIMM/Hyundai-Rotem, National Speed and Leningrad Region.

PR Newswire

HONG KONG, July 18, 2014 /PRNewswire-iReach/ -- Gordon Atlantic Development Hong Kong, Ltd, Korea Institute of Machinery and Materials (KIMM)/Hyundai-Rotem, and the Government of Leningrad have reached agreement regarding the implementation of a new regional commuter MagLev after a year of negotiations. The proposed system will be the third implemented Urban MagLev in the world after Seoul-Incheon Airport in Korea, as well as, Nagoya, Japan, and the only one outside of Asia. 

Photo - http://photos.prnewswire.com/prnh/20140718/128508

Currently, Gordon Atlantic Development Hong Kong, Ltd., handles all projects and petrochemical transactions for the Gordon Atlantic companies in Russia. However, Gordon Atlantic Development Hong Kong, Ltd, outsources significant components of Russian business to Gordon Atlantic Development Corporation (USA), and Gordon Atlantic Development UK, Ltd.

The plan has been repositioned many times to meet both the regional government considerations, as well as Gordon Atlantic's outside investor valuation requirements, which demand that the total cost of an economic development project divide into the first or second year valuation at least one time at an 11 % cap rate. The new MagLev will connect with an extension of St. Petersburg Metro Line 4 at Narodnaya, as well as regional bus terminal via a new Gordon Atlantic proprietary retail/cultural destination. The first phase of the project will connect Narodnaya to Kudrovo. With regard to the Phase 1 MagLev implementation, KIMM President, Yong-Taek Im, stated "the implementation of levitation technology of the ECOBEE MagLev, developed by KIMM and manufactured by Hyundai-Rotem, will effectively meet the needs of public transportation service in Kudrovo." He also added, "ECOBEE will be a new icon of the historic and cultural heritage of the Leningrad Region, making the town more inviting as well as greener". The next phase of the project, is expected to connect Kudrovo to a new medical and university village. Phase 1 is expected to carry 80,000 passengers a day. The estimated cost of Phase 1 of the MagLev is £87.3/US$145.6 million, the price may be slightly higher to the final number of passenger vehicles required, but not significantly. 

Gordon Atlantic has eliminated rent in all self-created retail/cultural destination environments around the world, and has moved towards a percentage of sales model. The new retail/cultural model is an invitation-only retail environment – that allocates retail space to known retail performers based on historic percentages of sales. The facilities offer four (4) types of space – AA, A, B, C based on historic performance sales per square foot. The model also features conference and cultural facilities, as well as two (2) different star level hotel options. Currently, proposed sites for the firm's new model exist in the United Kingdom, and India. In addition, three (3) sites have been identified in the United States. These potential developments are located in Hawaii, New York, and Texas. 

Although, a new retail/cultural destination model is expected to follow suit, and will likely be the first post-rent retail environment in Russia. The only one of the sites capable of incorporating a MagLev outside of the Leningrad Region is located in Texas. The estimated cost of retail/cultural destination facility is £461.25/US$768.75 million. The Phase 1 of the MagLev and retail/cultural destination facility will be treated as independent, yet inter-related projects as far as financing and development are concerned.

Gordon Atlantic's United States in-house counsel, Don Curry, states, "these are early days for anything happening in Texas, however, I am excited about the implications the Leningrad Region MagLev and new retail/cultural destination facility/hub can have for the Lone Star State. He adds, "I have watched William Hyatt Gordon pursue this project for the last year, while he is charming and brilliant, the agreement reached in Russia was largely due to his persistence and belief in the viability of the Russian economy." 

"Having been here off and on every few weeks, over the last year, I have come to understand that Russia is a very patriotic and proud country, despite the beautiful art, architecture, magnificent history, and phenomenal culture, the people in St. Petersburg and the Leningrad Region are my favourite aspect of Russia," said Gordon Atlantic CEO, William Hyatt Gordon. "I look forward to integrating both the new retail/cultural destination model and the Phase 1 MagLev as civic assets into the mosaic of residents' everyday lives, and exciting features for visitors to the region."

There is a feeling of jubilation amongst those who have been part of the year-long negotiation to arrive at a point of agreement. "The completion of this agreement is a milestone moment for all of us, as well as the Leningrad Region", said former Minister of Transportation of the Russian Federation, and President of National Speed Ways, Mr Anatoly Zaitsev, who continued, "It makes me proud to be able to lead Russia to the next level of technological achievement in transportation through the implementation of the new urban MagLev".

About Korea Institute of Machinery & Materials (KIMM) – www.kimm.re.kr

Founded in 1976, Korea Institute of Machinery and Materials (KIMM) is a state-sponsored research institute that has led Korean Research & Development efforts in the machinery industry.

About Gordon Atlantic Development Corporation – www.gordonatlantic.com

Gordon Atlantic Development Corporation is an aspirational economic development firm that pursues next-generation media, sports-entertainment-leisure, healthcare, and transportation projects in Angola, Australia, the Bahamas, Bulgaria, Chile, China, Finland, Germany, Hong Kong, Ireland, India, Indonesia, Nicaragua, Puerto Rico, Russia, South Africa, South Korea, Spain, Sri Lanka, Thailand, the United Kingdom, the United States, and Vietnam. Additionally, the firm provides economic development private client consultancy for job producing media, real estate-based, and transportation projects worldwide. The firm generates equity for self-created projects via margins in petrochemical sales. Gordon Atlantic Development Corporation (USA), and its subsidiaries Gordon Atlantic All India, Ltd; Gordon Atlantic Alle Deutschland, GmbH; Gordon Atlantic Development Hong Kong, Ltd; and Gordon Atlantic Development UK, Ltd operate as stand-alone offices worldwide.

Media Contact: Jessica Johnson, Gordon Atlantic Development Hong Kong Ltd, +852-8192-5676, jaj@gordonatlantic.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE Gordon Atlantic Development Hong Kong Ltd

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