Real estate investment company Sponda has signed an agreement with SRV, Ilmarinen, Etera and Onvest to establish Russian Invest, an investment company in Russia.
The newly established company will invest in property investment projects in Moscow and St Petersburg. SRV will assume responsibility for project development and marketing and will also act as the leading project contractor for projects approved by the investment company.
The partners have committed to invest a total of 95.5 million in the investment company. Sponda, Ilmarinen and SRV each own 27% of the newly established company. Etera owns approximately 13% and Onvest about 5%. The capital will be tied up only after the investments have been identified and investment decisions made.
Otherwise, the aim is to finance Russian Invest development projects through project-specific bank loans. The total investment amount may reach approximately 300 million. The investment company's strategy is to sell off the completed properties after a few years of ownership.
"The business concept of Russian Invest supports Sponda's growth strategy in Russia. During the investment period we will have the opportunity to acquire new properties that meet international standards from the joint venture and thereby grow our Russian property portfolio," says Kari Inkinen, CEO of Sponda Plc.
Sponda has been operating in the Russian market since 2006 and established itself as a provider of quality business premises and as a property investor that invests in long-term property development. Sponda's properties are in central locations in Moscow and St Petersburg.
Source: GlobeNewswire
