On the Russian front

Polnord, a Polish developer controlled by business tycoon Ryszard Krauze, has signed a letter of intent with Russkiye Samotsvety for the construction of an $800 (zł.1,949) million office complex in St. Petersburg. The project will have a total area of 250,000 sqm and is expected to be completed by 2012.

Polnord will construct the office complex on a six-hectare plot located at the intersection of two main arteries in the Krasnogvardeysky district, in close proximity to the train and subway stations as well as shopping centers. The plot belongs to Samotsvety and comprises its contribution to the project, while Polnord will be responsible for financing the development, construction and sales.

Once all the details are agreed upon, the investment in St. Petersburg would be Polnord's largest commercial project to date, following the Warsaw Technological Park, which covers a total area of 140,000 sqm. However, it is still too early to say when the construction may begin or exactly what the project will comprise.

"At the moment it is only a letter of intent," said Bożena Wawrzewska, the spokesperson for Polnord. "We have given each other three months to agree on all the details and work out a [more precise] plan," she added, explaining that the two companies hope to have the design for the complex and financial plans ready by that time.

A new company will be established especially to deal with the project. The partners, Russkiye Samotsvety and PLP Development Group ZSA, a company established in Russia by Polnord in which it has a 50-percent stake, will decide how the new company will be divided by June of next year.

Polnord already has two projects underway in Russia and hopes to strenghten its position in the country.

Anna Kapica-Harward