March 8, 2007
Hansastroi raise EUR 20 million equity financing from investor group
Helsinki/St. Petersburg, March 7, 2007. Hansastroi, a construction company focusing on growing Russian construction and real estate development services market, is accelerating its growth through raising EUR 20 million equity financing from investor group. The investor group includes Quadriga Capital Russia Private Equity Fund, EBRD, DEG, and private investors. In addition to equity financing the total amount of financing package including debt financing will be over EUR 50 million.
Through its managements long experience in Russia with the support of this financing round, Hansastroi is planning to further expand its operations by increasing the volume of construction services as well as
by more actively operating in real estate development markets in several regional areas in Russia. Hansastroi´s client services will include offices, industrial and commercial premises, logistics, sporting
facilities and residential buildings.
The Russian construction market is estimated to grow significantly in the near future. Hansastroi as an experienced and as a locally established player is well positioned to accelerate its growth. The main
purpose of this financing round is to support the planned expansion. The investors are well-respected, experienced and sound institutes which are best possible partners to support our construction services and real estate business development in Russia and CIS countries says Ilkka Marjasuo, CEO of Hansastroi.
We consider that the long experience of the organization and its track record of quality services was a decisive factor to decide to invest in Hansastroi. Company is providing an excellent platform for furtherinvestment to growing Russian real estate market says Vladimir Marakhonov from Quadriga Capital Fund. Ere Kariola who has been developing investment strategy of 3i to Russia and also member of Investment Council of Quadriga says that transaction is very good opening for Finnish team and company to expand operations in Russia and he will hope to see more this kind actions to invest to Russia from many other Finnish companies.
"EBRD is pleased to have this opportunity to invest in Hansastroi alongside Quadriga and the other co-investors. The Bank is looking to expand its equity portfolio in Russia by investing through co-investments alongside other investment funds as well as through larger investments directly into investee companies." said Duncan Senior EBRD's Senior Equity Specialist based in St. Petersburg.
We believe that Hansastroi is well positioned to participate in the growth of the real estate market in Russia. The experience and talent of the management team together with the financial resources provided by investors are key factors for a continued future success of the company, says Martin Mainz, Senior Investment Manager of DEGs equity team.
Hansastroi provides quality construction and real estate development services in Russia and currently its order book is more than EUR 100 million. The Company was established by former managers of Skanska who acquired Skanskas Russian construction services company in 2005. Hansastroi is headquartered in Finland and Russian operations are based in St. Petersburg.
About Quadriga Capital Russia:
Quadriga Capital Russia is a sister company of the Frankfurt based Quadriga Capital and has been active in managing private equity funds in the Russian Federation since its inception in 1995. Quadriga Capital Russia is advising the new Fund II founded in 2006 for direct investments in Russian private companies. Investors in the Fund are the EBRD, the International Finance Corporation, 3i and a number of other institutional and private investors. The Fund has USD 136.0 million under management which are to be invested in Russian medium sized enterprises. Quadriga Capital Russia maintains offices in St. Petersburg, Moscow and Nizhni Novgorod.
The European Bank for Reconstruction and Development was established in 1991 as an international banking structure owned by 61 countries and two intergovernmental institutions. With a subscribed capital totalling EUR 20 billion (EUR 5 billion paid-in and EUR 15 billion callable), the EBRD uses the tools of investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. It invests mainly in private enterprises, usually together with commercial partners. The EBRD has AAA rating.
DEG has been structuring and financing investments of private companies in developing and emerging-market countries for more than 40 years. As one of Europe's largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions. It has an equity of 1.1 billion euros and will achieve total assets of over 2.5 billion euros in 2006. DEG has been a member of KfW Bankengruppe since 2001. KfW is one of Germanys biggest banks with total assets of 363 billion euros and an AAA rating.
HSH Corporate Finance acted as financial advisor to Hansastroi in the transaction
Mr Ilkka Marjasuo, CEO, Hansastroi, tel. +358 40 551 7243
Mr Eero Makkonen, Chairman, Hansastroi, tel +358 400 684 064
Mr Timo Vilen, CFO, Hansastroi, tel + 358 400 423 282
Mr Vladimir Marakhonov, Quadriga Capital, tel +7 812 4491250
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