Hungarian property company to build €1bn of Russian projects with retail specialist Torgoviy Kvartal in jv that will be among top five property players in the country
Hungarian property company TriGranit Development Corporation and Russian developer Torgoviy Kvartal have signed a joint venture agreement to implement projects worth more than €1bn.
The link will give the Budapest-based TriGranit access to a secured project pipeline in Russia, skilled Russian staff and new business relationships in the country. The new alliance will be among the top five commercial property players by size in the country.
Torgoviy Kvartal, one of Russia’s biggest retail developers, investors and managers of retail property, has shopping and leisure development projects in progress or pending in Naberezhnye Chelny, Nizhni Novgorod, and Omsk. It is active chiefly in the regions but has a large retail complex scheme in Domodedovo in the Moscow region.
The company is also negotiating on land plots in Penza, Ryazan, Samara, Saratov, Ufa, Kazan, Syktyvkar and other regions in Russia for further development.
In February TriGranit announced a $9bn development programme across Russia in a joint venture with Gazprombank-Invest, a unit of the Russia’s state gas monopoly, Gazprom, which will help finance the projects.
The jv will build 30 city-centre mixed-use complexes. Both parties will each put $1bn into the venture and will take out $7bn in loans over four years.
TriGranit was set up by Hungarian entrepreneur Sandor Demjan. Shareholders include Hungarian-born Peter Munk, who is chairman of US real estate investment trust Trizec Properties, and Nathaniel Rothschild, of the Rothschild banking family.
The company has operations in 11 countries in CEE, a large portfolio of assets, and a €8bn pipeline of mixed-use schemes.
