Swiss construction services group Implenia is teaming up with Russian property developer Russian Land in a new 50/50 joint venture called Russian Land Implenia (RLI). RLI will take over the planning, execution and subsequent management of all Russian Land's 16 construction projects, including the redevelopment of the former Hotel Rossia site, adjacent to the Kremlin.

Swiss construction services group Implenia is teaming up with Russian property developer Russian Land in a new 50/50 joint venture called Russian Land Implenia (RLI). RLI will take over the planning, execution and subsequent management of all Russian Land's 16 construction projects, including the redevelopment of the former Hotel Rossia site, adjacent to the Kremlin.

As part of the deal, the two companies are nominating a representative to sit on each other's boards of directors. Implenia's board will add Russian Land's CEO Urs Häner to the board, while Implenia's chairman Anton Affentranger will be nominated to the board of Russian Land. Addtionally, Russian Land is also becoming a shareholder in Implenia by purchasing a 2.71% stake, or 500,000 shares, for a price of CHF 39 per share.

The new joint venture will initially focus on project management for the development of all Russian Land projects, but in a later phase the RLI will handle major infrastructure projects. 'The two partners bring their own particular strengths to the new joint venture: Russian Land has the high-end projects and access to the market, while Implenia has the skills to plan and implement complex projects to the highest standards', Implenia said. Implenia's Peter Bodmer is assuming operational management of the new company.

In a statement, Implenia said that RLI marks the first step in the implementation of its internationalization strategy. The new company will carry out the huge redevelopment on the Hotel Rossia site in the center of Moscow, consisting of a new hotel, residential and retail space as well as two concert halls, a major museum and a library, the Russia Tower in Moscow, Europe's tallest building at over 600 metres, and the Norman Foster-designed New Holland project in St. Petersburg, which includes a Festival Palace. It is also planning regional projects in major centers such as Kaliningrad and Irkutsk.

Implenia added that it expects the joint-venture deal to boost its EBIT-margin to 6% by 2012. In 2006, Implenia posted an EBIT-margin of 1.8 %.

Russian Land is a leading real estate development and services company owned by Russian entrepreneur Chalva Tchigirinsky. The company has projects in prime locations in Moscow, St. Petersburg and other regional centres around Russia and is managed by a Swiss CEO, Urs Häner.