RDIF and partners agree project financing terms to create The Southern Satellite City
Press release, 24.05.2018
St. Petersburg, May 24, 2018 - The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation), the Government of St. Petersburg and Southern Satellite City LLC have reached a financing agreement on a project to develop The Southern Satellite City, to be located in the Pushkin district of St. Petersburg. A corresponding agreement was signed today at the St. Petersburg International Economic Forum.
The investment agreement sets out that up to RUB 7 billion will be invested to develop infrastructure for The Southern Satellite City.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"We are delighted to announce this financing agreement for the construction of The Southern Satellite City - one of the largest infrastructure investment projects in Russia. It will include the construction of homes as well as work, social and leisure facilities. The project will also include the development of transport infrastructure and the construction of an innovation center for the National Research University, Information Technologies, Mechanics and Optics, "ITMO Highpark".
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
Southern Satellite City LLC is the largest developer in the north-west of Russia. It applies a new urban approach to 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 at supporting the creation of a comfortable urban environment and new areas of attraction in St. Petersburg and the Leningrad region. At present, one of the main drivers of the city formation is – “ITMO Highpark” – new generation innovative center. During the initial phase of the regional development “ITMO Highpark” will become an anchor to attract 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 an excellent 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 in the area
- 12 km from the Expocentre congress and exhibition complex The Southern Satellite City is a strategic project of St Petersburg and is included on the short list of priority projects for the Russian Federation.
The construction of The Southern Satellite City is expected to begin in 2018 and last 15 years. The City 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 create over 60,000 jobs. The total investment in the project will be about RUB 219 billion.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Hayes / Andrew Leach
Tel: +44 (0) 20 7796 4133