SRV signed project management contract worth 100 million euros for construction of shopping center in Saint Petersburg
Pearl Plaza LLC, the joint venture of SRV and Shanghai Industrial Investment (Holdings) Co Ltd, has concluded the investment decision on construction of the first phase of the shopping center in Saint Petersburg, Russia. The sum of investment is about 130 million Euros. At the same time SRV Development LLC, the Russian subsidiary company of SRV Group, has signed the Project Management contract for the construction works of the first phase of the project. The PM contract is worth about 100 million Euros. Financing of the project will come mainly from China. SRV's share in the joint venture is 50%. SRV will invest approximately 20 Million Euros in the implementation of the first phase. SRV is responsible for commercial development and leasing of the premises.
The scope of the first phase of Pearl Plaza SC is about 86,500 m2, with GLA about 46,500 m2.A hypermarket will be located on the basement floor. Pearl Plaza has signed a letter of intent with the Finnish Prisma supermarket operator, who will lease around 7600 square meters from the shopping center for a hypermarket. Underground parking facilities will also be built on the basement floor. Retail space will be located on the first and second floors. Entertainment and leisure services - cinema, kids' play world, fitness club and restaurants - will be located on the third floor. Construction works of the first phase will start immediately and they will be completed in early 2013.
- Russia is the main focus area in SRV's strategy. Commencing the construction works of Pearl Plaza is a significant step in our Russian projects. In addition to the construction contract, SRV believes that Pearl Plaza is an excellent investment. The number of inhabitants in the area and the lack of commercial supply set up a good background for the success of the shopping center, says Jukka Hienonen, CEO of SRV.
As in other projects in Russia, SRV can remain, according to its strategy, a temporary owner in completed projects to increase the commercial value. Depending on the market situation, such projects are sold after 1 to 3 years after completion.
Pearl Plaza shopping center is being built in Baltic Pearl residential area that Chinese owned Baltic Pearl CJSC is developing in the South-West part of Saint Petersburg for 35,000 people. First residential buildings in the area have already been completed.
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