OJSC Construction Corporation Renaissance of St. Petersburg (a company of LSR Group) has obtained an Authorization to commission three mansions, Class A+ office buildings, in one of its luxury neighbourhood projects under development in central St. Petersburg - Paradny Quarter (Front Quarter).

Each mansion having a total area of over 5,000 sq.m is provided with its own underground parking lot for 27 vehicles. One of the mansions will accommodate the representative office of BEITEN BURKHARDT, a German law firm with which a lease agreement has already been signed. Another mansion was sold right away. According to Georgy Bogachev, Head of Elite Property Division of LSR Group, this transaction as well as the negotiations regarding other office space of the Paradny Kvartal project indicate high demand for prestigious office centres of Class A+ in St. Petersburg’s downtown area.

Notes to Editors:

Paradny Quarter is a multi-purpose office and residential development, the first posh neighbourhood in St. Petersburg.

Paradny Quarter is the first project involving the construction of a large-scale office and residential compound of deluxe class in the historic centre of St. Petersburg. The project includes a whole block of residential buildings, business and shopping centres, as well as new streets and squares. The project site borders on Kirochnaya Street, Radischeva Street, Vilensky Pereulok and Paradnaya Street.

In close vicinity to Paradny Quarter are the Tauride Garden and the Smolny Cathedral. The high status of the location manifests itself in the fact that next to it are the Governor’s Office and the buildings of the Administration of St. Petersburg and the Government of the Leningrad Region. The project is situated in the downtown area and has a good transport infrastructure.

The development comprises 16 buildings 8 of them being detached office mansions of Class A with their own underground parking lots. All of the buildings are of the same classical architecture style with similar engineering solutions used. The 8 to 11-storied residential buildings are provided with a pedestrian area. Their ground floors will accommodate a fitness centre with a swimming pool, cafés, shops and offices. The flats on the upper floors will have access to open terraces with panoramic views of the Smolny Cathedral and the Tauride Garden. An underground parking lot will be built under the residential buildings – the largest underground parking area in central St. Petersburg. 

OJSC Construction Corporation Renaissance of St. Petersburg (a company of LSR Group) is a leader of the elite property development market in St. Petersburg. The corporation was founded in 1994 and is today one of the largest construction companies in Russia. The track record of the company includes 32 projects successfully implemented in the most prestigious, challenging and important locations in the historic centre of St. Petersburg — a total of 64 residential buildings and 6 business centres. The company prides itself on the restored buildings that are of historic value for the city being architectural monuments of the 18th and 19th centuries. Currently work is underway to construct Phase 1 of Paradny Quarter – the first posh neighbourhood in St. Petersburg, and deluxe residential compounds such as Dom u Morya (Seaside House), 60 Shpalernaya (Phase 3) and Suvorovsky Residence. New projects are being prepared.

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. The Group includes enterprises for extraction and processing of aggregates, production and transportation of building materials, and housing construction — from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects.

LSR Group has operations and offices in a number of cities in the Leningrad Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people.

In 2005 and 2006, the revenues of LSR Group (according to IFRS statements) were US$ 463 million and US$ 777 million respectively. In 2007, the revenues amounted to US$ 1,403 million.

LSR Group has a B1 rating from Moody’s Investors Service (outlook – Stable) assigned in July 2007 and confirmed on 30 May 2008 and a B+ rating by Fitch Ratings (outlook – Stable) assigned on 30 May 2008. The Group’s shares are listed on MICEX and RTS and on the London Stock Exchange in the form of GDRs since its IPO in November 2007.

In 2007, LSR Group was awarded ‘The Company of the Year’ National Award in the ‘Construction’ category.