RDIF and Renaissance Construction investment to establish Southern Satellite City in St. Petersburg
Press release, 02.06.2017
St. Petersburg, June 02, 2017 - The Russian Direct Investment Fund (RDIF) and Renaissance Construction (a leading Turkish construction, development and investment company) together with the Government of St. Petersburg and the Southern Satellite City LLC, have agreed to jointly establish the Southern Satellite City. The City will cover an area of approximately two thousand hectares located in the Pushkin district of St. Petersburg. This agreement was signed during the St. Petersburg International Economic Forum (SPIEF).
The future satellite city will encompass residential quarters, as well as the Innovative City of Science and Technology, which will include the campus of the St. Petersburg National Research University of Information Technologies, Mechanics and Optics (ITMO University) and a range of innovative production sites. The project has attracted a wide range of investors.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"Bringing in an experienced international investor like Renaissance Construction to such a large-scale project as constructing a whole city will not only significantly reduce the cost of implementation, but also improve the efficiency of construction. We are confident that the experience and expertise of our Turkish partners will prove invaluable at all stages from the design, to construction and commissioning. This is a huge project, of which an important component will be the construction of the ITMO University campus."
Sergey Khromov, General Director of the Southern Satellite City LLC, said:
"We have always stressed the importance of joint implementation of such large-scale projects as the Southern satellite city with experienced investors and developers. We consider cooperation with the Russian Direct Investment Fund as part of our long-term strategy. At the very first stages of cooperation, RDIF was able to attract such a strong partner as Renaissance Construction. It is one of the largest and most respected construction companies in the world with extensive experience in implementing projects of all sizes and complexity. I am confident that our partnership with Renaissance Construction will become a great example of successful international cooperation, which will also attract new investors to the Southern project."
Dr. Erman Ilıcak, Founder and Head of Renaissance Construction LLC, said:
"We are pleased to be able to work on such a large project together with one of the most respected organizations of the world - RDIF. The "Southern" project is strategically important not only in terms of contribution to the economic and social development of St. Petersburg, but in terms of the contribution to the economy of Russia at large. Upon completion of the project, the Southern satellite city will provide employment opportunities for more than 60 thousand people. Science, technology and culture centers, along with the university campus will become an important stage for the development of Russia.
Renaissance Construction was established in St. Petersburg, and now we have the opportunity and the privilege of utilizing our experience and knowledge to serve the city where our company was born."
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru
Renaissance Construction LLC an international construction corporation, the leader of the construction industry, was founded in 1993 in St. Petersburg. Renaissance Construction LLC provides a full range of services in the design and construction of retail and multifunctional complexes, hotels, industrial facilities, residential buildings, energy facilities and infrastructure. Since its inception, Renaissance Construction has successfully implemented more than 500 projects with a total area of ver 15 million square meters. Renaissance Construction occupies the 44th line in the expanded ranking of the "225 largest international construction contractors" (Top 225 International Contractors) according to the US edition of the Engineering News Record (ENR).
Southern Satellite City LLC is the largest developer in the north-west of the Russian Federation. It applies a new urban approach to the development whereby an area should be modeled taking into account all the vital needs of future residents.
The company focuses on development projects in urban and suburban real estate. Currently, the company owns and operates a land bank with a total area of more than 40,000,000 square meters across St. Petersburg and the Leningrad Region.
The Southern Satellite City is a new district of St Petersburg whose development is aimed to support the creation of a comfortable urban environment and new attractive areas in St. Petersburg and the Leningrad region.
At present, one of the main drivers the city formation is –the "Innograd of Science and Technology" (100 hectares), a joint project of RUSNANO, St. Petersburg, Southern Satellite City LLC and ITMO University. At the initial stage of the development of the Innograd region, it will become an anchor and core of attraction for other types of activity: innovative enterprises, modern art spaces, youth leisure centers, service companies, hypermarkets, etc.
The land asset (2012 hectares) in the Pushkin district is in an extremely promising location:
- in the palace triangle of Gatchina-Pushkin-Petrodvorets
- 14 km from Pulkovo Airport and from the Ring Road, with the adjacent Kiev Highway and two railway stations on the territory
- 12 km from the Expocentre congress and exhibition complex The Southern Satellite City is a strategic project of St Petersburg and is included in the short list of priority projects of the Russian Federation.
The construction of the satellite city is expected to begin in 2018 and last 15 years. The Southern is expected to provide 4.3 million square metres of housing for 134,000 people. The area of commercial real estate will be more than 1 million square metres. The new area is also expected to createover 60,000 jobs. The total investment in the project will be about RUB 219 billion.
For additional information contact:
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes / Yulianna Vilkos
Tel: +44 (0) 20 7796 4133