Today OOO City House Building Company (OOO GDSK), a subsidiary of LSR Group (LSE: LSRG; MICEX, RTS: LSRG), has acquired a land plot of 91.5 thousand square meters in the Moskovsky district of St. Petersburg through an open auction held by the Russian Auction House in St. Petersburg. The acquisition price amounted to RUB 1 bn.
OOO GDSK is planning to develop a new mass market residential complex on this land plot. According to the preliminary estimates, total sellable area of the complex will be 119 thousand sq. m, including 90 thousand sq. m of apartments.
The complex is expected to comprise buildings of various height with the highest one of 24 storeys. Moreover, the complex will include a kindergarten and a school. All the buildings will be constructed using a seamless facade fit-out technology by CJSC DSK Block (a subsidiary of LSR Group). The construction start is planned for 2012. The whole project is to be completed within 3 years.
The land plot for future construction is situated in the prestigious Moskovsky district of St. Petersburg, and has a unique location as it lies in the centre of the well-developed neighbourhood and bounders the Hero Cities Park, a traditional leisure area for the city residents.
Besides, the district has a well-developed social infrastructure: schools, kindergartens and clinics. There are various shopping centres and a health centre with a swimming pool in the close vicinity to the future complex. In addition, multifunctional zones with facilities for sport, entertainment and tourism and multi-storey parkings are to be constructed.
The land plot also has a well-developed transportation system. Zvyozdnaya metro station is within a walking distance and it takes only 5 minutes by transport to get to Moskovskaya metro station. There is an access to the Ring Road and Pulkovskoye Highway providing an opportunity to get quickly to any district of the city and also the cityĺs airports.
Evgeny Yatsyshin, Managing Director of Real Estate Development, Construction and Commercial Real Estate, Member of Executive Committee of LSR Group comments:
"We consider this acquisition a successful one. Firstly, the Moskovsky district was always very popular among customers. Secondly, the area has all necessary infrastructure. Finally, this land plot is one of the last plots available for residential construction in the Moskovsky district, which gives us additional competitive advantage.
Several of our projects are located in the vicinity of the new land plot. One of them - "Pulkovsky Posad" (scheduled for completion in 2013) is currently more than 90% pre-sold. The new land plot will allow us to maintain presence in the Moskovsky district, keeping our real estate porfolio balanced in future after other projects are completed."
Notes to Editors: According to "SPB Realty" in November 2010 the average price for mass-market residential real estate in St. Petersburg was approximately RUB 69,000. Average price for real estate in the Moskovsky district is 5-10% higher than in the city in general.