One of Moscow's favourite culture-and-nightlife haunts among expats, the hip-and-happening Red October complex, is reportedly to close.

According to media reports, the owner of the former chocolate factory is turning the site into elite residential housing.

However, any reconstruction of the buildings is subject to certain restrictions. The developers are obliged to keep the housing complex red. In addition, building of high-rise blocks in the area is forbidden: they can be no more than four to six floors high. Furthermore, the blocks’ structure has to resemble historic factory buildings. In total, there will be 25,500 square meters of housing.

Before the construction starts, archeological works will take place as the site is of historical interest.

The first plans for the factory’s reorganization were compiled in 2003, when the territory was approved as part of the Golden Island project. Back then, the factory was expected to become an elite housing complex with lofts.

In 2009, the authorities froze the project due to the financial crisis, and the territories were given out for rent.

The project is expected to start no earlier than 2013 as the investors first need to collect all the necessary documents and finish the plan.

When the project gets under way, all tenants will have to leave the premises of the factory. It is currently used by clubs, boutiques and restaurants.

The price for the elite housing, once it is built, could amount to $25,000 to $30,000 per square meter.