Austrian construction group Strabag is expanding its business in Russia with the acquisition of a 26% stake in a local developer and the signing of an agreement to develop hotels and apartments in the city of Sochi on the Black Sea coast.
Austrian construction group Strabag is expanding its business in Russia with the acquisition of a 26% stake in a local developer and the signing of an agreement to develop hotels and apartments in the city of Sochi on the Black Sea coast.
The company has signed a memorandum of understanding with Glavstroy Corporation, a construction unit of Oleg Deripaska's Basic Element, for the construction of the Olympic village facilities. The project is expected to be delivered by September 2013 ahead of the 2014 Olympic Winter Games. The EUR 350 mln contract is conditional on the financing for the project being finalised.
At the same time, Strabag has agreed to fork out an advance payment of EUR 70 mln for a 26% stake in Deripaska's Transstroy construction company. The company 'will take the time for a thorough due diligence of Transstroy, which posted turnover of RUB 39 bn (EUR 931 mln) in 2009, before agreeing on a definitive purchase price', it said.
'Russia already shows the first signs of recovery from the financial and economic crisis. I am convinced of the strong market potential there. By 2020 Russia could be one of the three largest markets for the Strabag Group,' said CEO Hans Peter Haselsteiner.
A Deripaska investment vehicle has announced that it is buying back a 17% stake worth EUR 373 mln in Strabag after being forced to sell its stake in the Austrian company last year.
