OJSC Rudas, a subsidiary of LSR Group (LSE: LSRG; MICEX, RTS: LSRG) sold a land plot of 140 th sq.m in the Primorsky district of St. Petersburg near the city boundary to CJSC Public and Business Area Okhta Center (a subsidiary of Gazprom) . This area was previously used as a sand storage facility.
CJSC Public and Business Area Okhta Center plans to construct a business centre for Gazprom-neft and other Gazprom subsidiaries on the acquired site.
Alexandr Vakhmistrov, Chief Executive Officer of LSR Group, comments:
“This transaction was beneficial for us. The sold land plot was previously used a sand storage facility but without this site our sand storage capacity is sufficient. Also, according to the land use and development regulations, approved several years ago, this area could no longer be used for industrial purposes. We are glad that Gazprom found this land plot attractive for its project”.
The sold land plot was a part of LSR Group's building materials operations, therefore it was not included in the real estate portfolio of the company which was evaluated by DTZ, the independent international appraiser.