Lemminkäinen to construct approx. 2,000 residential units in downtown St Petersburg
Lemminkäinen has signed a binding framework agreement with Lipsanen & Co. Group for the realization of a vast residential construction project on Vasily Island, downtown St. Petersburg. The total value of the project is approximately 400 million euros. The construction work is estimated to start in early 2012 and the first phase of the project to be completed in 2014 the latest. The estimated completion of the whole project is in 2017.
In accordance with the agreement, Lemminkäinen will build approximately 2,000 residential units in addition to business and office premises on a 5.6 hectare lot. Lemminkäinen will be responsible for the construction, marketing and sales related to the project. The parties have agreed not to disclose any details on the terms of the cooperation.
Currently, the area of land targeted for the project houses industrial buildings. The plan is to start demolition in the summer of 2011. The construction project will be implemented in phases and completed in approximately six years. The site already has the first-level approvals in the city district plan, and municipal engineering services have been provided for the site.
"In accordance with our strategy, we seek growth in the St. Petersburg residential construction market. With this agreement, we have three construction sites in excellent locations in St. Petersburg. In total, some 2,700 residences will be built there," states Timo Kohtamäki, President and CEO of Lemminkäinen Corporation.
"This is a significant cooperation venture, which highlights the decades of experience both companies have in Russia. Other key parameters are the scope and the phase of completition of the project, as well as and our shared vision for quality- and schedule-related goals," says Juhani Lipsanen.
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