OREANDA-NEWS. October 14, 2008. Expo Real brings the chance for investors and developers to meet and partner on diverse projects being planned across the globe. One such developer, Russian holding Renova StroyGroup, is quickly building a name for itself as a real estate company to watch. Its massive urban developments provide the chance for non-Russian investors to move into the country in partnership, and their green credentials are keeping them at the forefront of the sustainable wave.
 
There are some development companies whose ambition and scope really lift the imagination, and Renova StroyGroup is one of them. A key Russian player in massive mixed-used developments, this interview with REurope Magazine touches just the tip of the ice-berg, as Chairman of the Board of Directors Viktor Maslakov describes schemes as diverse as a city merged with a forest (Akademia City) to plans to roll out a chain of 20 three-four star hotels across Russia. Renova StroyGroup is already a familiar name on the domestic front, as its holding company Renova is a leading asset manager in Russia. With interests including metallurgical, oil, machine engineering, mining, chemical construction, utilities, as well as the financial sectors, Renova is a shareholder of leading mining and industrial entities in the Russian and global business communities, such as TNK-BP, United Company RUSAL, Oerlikon, Sulzer and CJSC Integrated Energy Systems.
 
Exhibiting at Expo Real to inform and attract investors and business partners, Renova StroyGroup is promoting its expertise in land site development, engineering infrastructure, commercial property and housing construction projects in different parts of Russia.
 
Their signature development style involves a unique market product which has become known as integrated urban development (IUD). This sees the creation of new, attractive urban living environments by elaborating integrated and well-balanced city planning concepts (including housing facilities, infrastructure, commercial property, social and leisure facilities) and implementing them at a chosen site. The group also implements large-scale projects of integrated urban reconstruction (IUR), transforming old industrial cities, bringing Russia's provincial towns into the modern age.
 
Amongst its key projects already underway, Akademia City will be a new residential district situated in the south-west of Yekaterinburg, one of Russia's largest cities. The first in a series of integrated urban development projects implemented by the company, it is distinguished by a stunning forest setting, which will blend into the city, and comprise large amounts residential and commercial real estate, shopping areas and office buildings. Plans for an entertainment and shopping centre with a total GLA of 155 000 sq m will set a new precedent in Russia, while the scheme also envisages the construction of a congress hall and an exhibition centre.
 
Sunny Valley, their second Integrated Urban Development project, will see the construction of a satellite town for Chelyabinsk - one of the most economically advanced Russian cities in existence. Located 5 km away from the north-western border of the metropolis, Sunny Valley is being constructed near natural lakes, and will see the development of some 3.2 million sq m of residential and 1.8 million sq m of commercial property. Sunny Valley will have a powerful central core comprising an entertainment and shopping centre, a business park, administration and office premises, hotels and a congress hall, and will reach completion in 2024. Based on the most advanced principles of sustain-ability, it will offer its residents a glimpse into the future, combining urban amenities with the benefits of country living.
 
In an exclusive interview with REurope Magazine, Chairman of the Board of Directors Viktor Maslakov explains how these are developing and lifts the lid on other plans for the future.
 
RE: WHAT'S YOUR STRATEGY FOR ATTENDING FAIRS SUCH AS EXPO REAL?
 
VM: Our major purpose at fairs is to look for partners and strategic investors. They also represent very good opportunities to save energy, by meeting all your potential partners and investors in one location! You can only do that in very few places.
 
RE: YOU'RE KNOWN FOR YOUR ABILITY IN HANDING LARGE SCALE PROJECTS WHICH OTHER COMPANIES FIND HARD TO TACKLE. WHAT'S YOUR SECRET?
 
VM: Our biggest secret is the fact that we feel we have found out what people really need, and so tailor-make the projects according to their desires. Secondly, we have a few competitive advantages in comparison to other countries. We're now in a position to be able to offer a new standard of quality of life for the people of Russia. Not only brand new buildings, streets and facilities, but a whole new lifestyle concept - and this is why we need such big plots to realise our ambitious schemes.
 
RE: RENOVA STROYGROUP SCHEMES ARE INDEED ASSOCIATED WITH STUNNING LANDSCAPES...
 
VM: You need to start with a natural landscape for the kind of schemes that we do, and they demand environments which you can not build, as they can only be found in the natural world. Our IUD schemes are not burdened by old, existing infrastructures. We build totally new environments, with entirely modern infrastructure. We're not building cities targeted for poor people or for the very rich, but for all levels of the population. Our ideology is that everyone should have the same access to the natural resources occurring in our country, and have the same right to a quality of life. Access to infrastructure should also be the same for all, regardless of wealth. But once inside their houses, the initiative passes to the owner to create individual finishes and express themselves within the context of the property.
 
RE: WHO ARE YOUR DESIGN PARTNERS ON YOUR PROJECTS?
 
VM: We're collaborating with very good architects across all our schemes. If you look at our project Akademia City in Yekaterinburg, we're working with Valode & Pistre Architectes, which is a leading French company, and in Chelyabinsk, with the Sunny Valley project, it's the RTKL agency, another globally famous architectural practice.
 
RE: HOW FAR ARE YOUR PROJECTS ENVIRONMENTALLY SUSTAINABLE?
 
VM: The major hallmark of our projects is that we do not destroy the natural environment which is there. To give an example, on Akademia City, out of a total of 1200 hectares, 400 will remain covered by the forest that we found there. The trees surround and balance the scheme, and the city will also feel as if its incorporated into the forest, has become a part of it. Many properties will have a view over water, as we're adding canals to the landscaping. In terms of sustainable technology, we're also building purifying facilities and have also built the water-system under the whole scheme. In Sunny Valley, we are building the scheme around naturally occurring lakes without touching them, leaving also park spaces to improve the quality of life, so it is another project which entirely promotes the natural environment.
 
RE: WHAT IS THE TYPICAL PROFILE OF YOUR INVESTORS, AND HAS THAT CHANGED IN RECENT TIMES?
 
VM: We have two types of investors. The first kind are real estate investors, who are in possession of the specialist real estate development expertise which we do not have. For example, Akademia City will feature a shopping centre over a 155,000 sq m area, a mould-breaking scheme. For that, we need a partner with development and management expertise for shopping and leisure schemes on that level. Another example: the city has its own autonomous electricity supply, as we have a power station generating 400 megawatts in Akademia City, so we're bringing in experts to build and operate the substations. We've also been looking for specialist partners for medical centres, business parks etc. If the partner is right, we have no problem with dividing the investment share, we're looking to keep a share of 25-50% in those kinds of projects.
 
The second category of investors is the pure financial players, who are ready to invest in this kind of massive project. As a typical example, we are now in negotiations with the European Bank for Reconstruction and Development, EBRD, who are looking to invest in the overall project, and this is the kind of investor we're looking at to work with.
 
RE: YOU'VE SHOWN US AKADEMIA CITY AND SUNNY VALLEY - WHAT OTHER PROJECTS ARE THERE IN THE PIPELINE FOR RENOVASTROYGROUP?
 
VM: Despite the fact that these are the two major projects that we have been talking about, we're not a company of two projects only. We're working in a lot of regions in Russia, such as Perm, Krasnodar, Yaroslavl, the Moscow Region, and many more. In the latter region, for example, we're building more than 1 million sq m of residential property. We're also now developing a project which will see us build a chain of 20 three-four star hotels across Russia. Today we're capable of offering potential investors all kinds of projects to fit whatever strategic interest they may have. We're deeply convinced that the best strategy for international investors to get into the Russian market is by partnering with a major local player. In that sense, Renova is an excellent partner, because we are one of the biggest development companies in Russia.
 
Renova StroyGroup is a part of Renova Holding, which has very big stakes in a few major companies such as RUSAL and TNK-BP, the third largest oil company in Russia. Another partner, CJSC Integrated Energy Systems is one of the biggest Russian energy companies, whilst Oerlikon is a fast growing high-technology business. That's just to give you a small idea of whom Renova StroyGroup belongs to. Foreign investors can be sure they're dealing with a major, respectable company which has a lot of interests when they get involved in our schemes.