LSR Group to invest in new projects

2010-03-22



The LSR Group intends to resume investment in the construction of new residential properties after a break of more than one year. The company is planning five new development projects in St. Petersburg. In addition, it is interested in acquiring new sites in St. Petersburg, Moscow and Yekaterinburg.
In December 2008, the group announced that it was not going to invest in the construction of new residential projects until the situation in the country had improved. Instead, it decided to concentrate on the completion of ongoing housing construction.
It has become known recently that GDSK, a subsidiary of the LSR Group, is planning to purchase 37 ha of land in the Kalininsky District of St. Petersburg, on which it intends to build 350,000 m² of residential housing. The construction work is due to be completed by the end of 2016.

As this winter’s snow melts, the Russian construction market is also thawing after a slump which lasted for more than a year. Developers such as Etalon LenSpetsSMU, AFI Development and Glavstroy SPb had announced previously that they were resuming projects put on hold after the onset of the crisis, and the LSR Group is now intending to invest in property development in Russia again. After these early green shoots of recovery, as spring takes hold, we expect an increasing number of developers to follow suit, and this will help the construction industry to return to a path of growth in the next few months.

Robert Obetkon
Senior Construction Analyst
PMR Publications