LSR Group acquires Yekaterinburg developer for EUR 100m

Russian real estate developer LSR Group said it has acquired 100% of Yekaterinburg, Russia-based property developer ZAO Nova-Stroy for EUR 100mln. LSR said the acquisition of ZAO Nova-Stroy, the third largest developer in Yekaterinburg, was part of its strategy of setting up its regional division in the Urals region bases on an integrated business model combining real estate development and building materials production.

LSR Group said ZAO Nova-Stroy currently has the ownership rights for properties under development and land plants to be used for housing construction with a net sellable area of more than 530,000 m². According to an appraisal from property consultancy DTZ, LSR noted the open market value of these properties was about EUR 127mln. In addition, since it was founded in 2002, ZAO Nova-Stroy has already constructed 20 residential properties with a net sellable area in excess of 145,000 m² as well as 30 commercial built-in and annexed premises and buildings with a total net sellable area of about 7,000 m².

ZAO Nova-Stroy also owns 100% of Yekaterinburg’s largest construction contractor, OOO SMU Nova-Stroy and 25% of the design office OOO PKU Nova-StroyProekt, in which LSR recently acquired the remaining 75%.