MOSCOW, February 28 - RAPSI. The Moscow Commercial Court has turned down Moscow McDonald's lawsuit to invalidate the Moscow government's property rights to its facility, the court told RAPSI on Thursday.

Moscow McDonald's discovered that the facility in dispute was placed on auction in November 2012.

The plaintiff noted that Moscow McDonald's signed a lease agreement with the Moscow authorities in the early 1990s. Under the agreement, the company agreed to renovate the building at its own expense in exchange for a reduced rental payment until 2012.

The company built an extension to the facility as part of the renovation. As a result, the facility area grew from 700 to 1,700 square meters.

Moscow McDonald's and the Moscow Property Department were later involved in a dispute over the new area.

In 2006, the department's district commission resolved that the extension should be used as opposed to removed, according to Moscow McDonald's lawyers. They said the department decided to assign the rights to the property built without official permission to the city in 2008.

The plaintiff's representatives claim that the defendant was not authorized to register the property as its own. The company asked for the property rights to be invalidated, so as to demand compensation for the facility.