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Deutsche Bank to Build in Russia
Deutsche Bank and the Austrian construction company Strabag have formed a joint enterprise, DB Development, to operate on the real estate markets of Russia and the CIS. This will be the first time a Western builder is both contractor and investor in Russian projects. Its first project will be the Four Seasons in Moscow, for which Deutsche Bank will grant a credit of $350 million. Strabag will have a chance to spend its oney as well as the joint enterprise builds over 1 million square meters of housing and commercial space in the next three years in Moscow, St. Petersburg and other large Russian cities.
Deutsche Bank and Strabag will have equal shares in the new company and each have two representatives on the five-member board of directors. The fifth member will be Moscow developer Dmitry Garkusha, general director of DB Development. He is the former general director of Daev Plaza, which is controlled by State Duma member from the LDPR Ashot Egiazaryan. He has also been a consultant to Ligastroiproekt, which owns the Evropark shopping center. Garkusha told Kommersant that “Two weeks ago, I resigned from the companies and foundations I used to work at, except for Dekmos,” which is the developer of the reconstructed Hotel Moskva. Strabag is the general contractor for that project, and Deutsche Bank provided a $600-million credit line for it.
DB Development does not plan to obtain land and initiate projects of its own. Rather, it will provide an array of services from selecting sites to construction management. Financial support will be provided as both credit and direct investment by Deutsche Bank and Strabag. The Four Seasons, the company's first project, has a 80,000-sq. m. site on Sofiiskaya Embankment. The developer for the project is Dekra. Strabag will be the general contractor and Deutsche Bank will provide a $350-million credit. Eventually, it plans to expand into the CIS, Ukraine and Kazakhstan in particular.
Strabag is one of Europe's largest construction companies. It has an annual turnover of over $10 billion. It has offices in more than 30 countries. In the former Soviet Union, it has offices in Moscow, St. Petersburg, Sochi, Ekaterinburg, Ufa, Riga and Kiev. Its largest projects are the Hotel Moskva and the northern town of the Moscow City development.
www.kommersant.com
All the Article in Russian as of Apr. 03, 2007
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Photo: Dmitry Lebedev
