27 Mar 2018 13:49

Finland's Honka to invest 3.5 bln rubles in Russian real estate projects in 2018

NOVOSIBIRSK. March 27 (Interfax) - Finland's Honka is planning to invest around 3.5 billion rubles in real estate development projects in Russia in 2018, envisaging the creation and development of a gated community outside Novosibirsk, the head of the company's Moscow office, Alexander Lvovsky, told Interfax

The company will focus on the construction or a "Finnish Quarter" made up of 30 townhouses in the gated community of Solovinaya Roshcha, where building has started 3 km outside of Novosibirsk.

The project manager for Solovinaya Roshcha, Oleg Kilin told journalists that the project would be financed by private investors, while Honka would invest in infrastructure.

"I would estimate total investment in the creation of engineering infrastructure and land design at around 45 million rubles," Kilin said.

The quarter will take three years to build.

A Honka spokesperson told Interfax that due to the active development of tourism in Russia, Honka is planning to increase the stake of hotel construction projects in its overall development portfolio.

Lvovsky said that the company is planning to invest around 1 billion rubles in such projects.

The Federal Antimonopoly Service (FAS) approved a late-2016 request from Sistema Finance S.A., an AFK Sistema subsidiary, to buy 99.86% of shares in Honkarakenne Oyj (Honka). Honka told Interfax that the company had decided against the deal with Sistema.

Honka is one of the world's biggest producers of wooden homes and has been operating in Russia for over 20 years.