10 Oct 2022 18:33

G-Group located in Russia's Kazan to purchase Russian business of Sweden's Bonava for 98 mln euros

ST. PETERSBURG. Oct 10 (Interfax) - Swedish developer Bonava has reached an agreement with G-Group from Kazan to sell its subsidiaries in Russia for 98 million euros, the equivalent of SEK1.1 billion, Bonava's press service said.

"The decision to leave Russia was made in light of the geopolitical situation. It was important to find a solution that takes into account the security of our employees, our customers, and the operation as a whole, and this sale addressed these factors," Bonava President and CEO Peter Wallin was quoted as saying by the press service.

"The transaction is expected to be finalized within six months," the press service said. "The closing of the transaction is dependent on authority approvals. These approval processes are complex given the circumstances and geopolitical factors," it said.

Bonava's operations in Russia will fully cease following the conclusion of the deal, and all obligations will pass to the new owner.

"The St. Petersburg operations will be reported as discontinued operations from the third quarter 2022," the press service said.

G-Group said in a press release that the Bonava brand and its derivatives will not be used in the company's activities.

Bonava announced on March 4 that it was ending its activities in Russia. At the moment of reaching the agreement with G-Group, Bonava had a land bank of around 16 hectares located in various areas of St. Petersburg, as well as a project in Vsevolozhsk in the Leningrad region to be completed in 2023. Approximately 230,000 square meters of housing can be built on these plots.

Bonava is a leader on the residential real estate market in Northern Europe.

Bonava was established in the spring of 2016 as a result of the residential construction division of Sweden's NCC holding having been spun off into a separate business. The company is located in Sweden, Germany, Finland, Denmark, Norway, Russia, Estonia, and Latvia. Its net sales totaled 1.5 billion euros in 2021. Bonava has projects on the residential real estate market in Russia in St. Petersburg and the Leningrad region. Bonava shares and unsecured green notes are listed on Nasdaq Stockholm.

G-Group is a consolidated company specializing in residential real estate construction under the brand Unistroy, commercial real estate construction and subsequent rental under the UD Group brand, and private housing construction under the brand My Corner by Unistroy.

The company was founded in 1996 and implements projects in the region where it is predominantly located, Kazan, as well as in St. Petersburg, Togliatti, and Ufa.