15.02.2013

START Development makes next step to development Yuzhny satellite town

15.02.2013 Shares in the Leningrad Oblast Communication Systems (LOCS) company will be sold at an open auction conducted by the Auction House of the Russian Federation. An according agreement has been signed between the owners of the shares, START Development company and the Auction House of the Russian Federation (AHR).

1,116,487 registered ordinary shares (74.99%) in LOCS will be up for sale at the auction, owned by the company START Development. A blocking share package of 25% + 1 share will remain in the ownership of the Leningrad Oblast government.

The START Development company group acquired the share package in LOCS in August 2011 at an auction conducted by the Leningrad Oblast Property Fund.

The asset was acquired for water supply and sewerage disposal for a development project for thorough development of “Yuzhny satellite town”, which is a major strategic project of St. Petersburg. Solving infrastructural tasks on the territory of Yuzhny, which has an area of 2,012 hectares, is a priority.

In the previous period, START Development carried out all the necessary measures for the restructuring of LOCS. The enterprise was taken out of a pre-bankrupt state, it began to operate with a profit, necessary technical work was carried out to ensure reliability of water supply (repair of the pipeline system, replacement of reinforcements etc.), and contracts were signed with major clients, primarily in the south of the city.

The work completed, and also the contracts for water supply and sewerage disposal both for the satellite town and other southern territories of St. Petersburg and the Leningrad Oblast will improve the economic indicators of the enterprise. In the next five years, LOCS’ turnover will increase by more than 2 times.

Andrei Nazarov, general director of START Development: “We have achieved the most important thing – technical specifications have been developed, contracts have been signed for delivery of water and sewerage disposal for Yuzhny. For us, LOCS is not a core asset, our main activity in concentrated in the field of developing territories. We must move ahead.

“It is extremely important for us that professionals work at LOCS,” Nazarov adds. “The money received from the sale of the LOCS share package will go towards the further development of our main project. Primarily towards solving engineering, architectural and planning tasks, which we took on according to an investment contract with the St. Petersburg government concerning Yuzhny.”

Reference:
Leningrad Oblast Communication Systems (LOCS) supplies water to people and enterprises, collects and purifies waste water, provides material and technical assistance to enterprises, including housing and municipal utilities. It provides water to consumers in the Tosno, Gatchina, Lomonosov and Kirovsky regions of the Leningrad Oblast, and also the Pushkin and Krasnoselsky districts of St. Petersburg.

START Development has been working on the real-estate market since 2007. The main activity of the company is developing and realizing projects in the sphere of city and country real-estate, including thorough development of territories. START Development owns and manages land assets of a total area of 4,200 hectares.

The Auction House of the Russian Federation (AHR) is the first nationwide Russian auction platform created to sell real-estate and business.
The Auction House of the Russian Federation was founded on 31 August 2009 in accordance with a decree of the Government of the Russian Federation № 1186-r of 19.08.2009.

The AHR was created with the active assistance of Sberbank of Russia. Sberbank is one of its main founders and partners.
The auction platform is oriented towards work with major property owners. The platform realizes state (federal and regional) property as part of privatization, and sells non-core property of banks and state corporations, and major private assets.

Its main clients are federal government structures, government structures of Moscow, St. Petersburg and the Khanty-Mansiisk autonomous okrug, federal state enterprises, major owners of real-estate, banks, building corporations and licensing companies.

Since it was founded, in September 2009, the AHR has sold property for a sum of over 73 billion rubles at open auctions.

The AHR has auction platforms in Moscow, St. Petersburg, Nizhny Novgorod, Novosibirsk, Rostov-on-Don

Media materials:
Business Peterburg
Kommersant
Vedomosti
RBK