Strabag has fallen back into the old ways

RE announced this project in 2007. The developer declared that would construct in the capital the office centre of A class with the total area 23,100 sq m, including 19,800 sq m of offices and three-stars hotel with the area 5,800 sq m at Lenin prospectus, 119. Then other large-scale project of the multipurpose complex Sun Gally Park (112,700 sq m) at Ligovsky prospectus in St. Petersburg that should place four-star hotel, offices, restaurants and shops was also announced. The company intended to start building of both objects in 2009, and to finish them in 2010 and 2011 accordingly.

And though the crisis has compelled the developer to shift terms of realization of the given projects RE does not gather to refuse them absolutely. “We have already started building in Moscow. The building mobilization passed, the excavations begin now. It is supposed to put the complex in operation in 2012” - the general director of the Joint-Stock Company “Strabag” Alexander Ortenberg has told CRE.

As he said, the project in the northern capital is at a coordination stage. Moreover, it was decided to clean a hotel component from MFC, and the object’s area decreased to 90 000 sq m, 50 000 sq m from which would occupy offices of A class, and other part would be used for retail and an underground two-level parking. The building should be started in 2011. “Now all details are discussed with the general contractors. Then the tender will be held and if our company wins it we will build MFC” - Mr. Ortenberg added. At present experts estimate investments into similar objects at level of $2400 - $2900 per 1 sq m.

It is necessary to notice that the first tenant of the capital office at Lenin prospectus becomes Strabag. The contractor looks for a new premise as it actively recruit a staff of new employees. Besides, now the company rents some premises at different offices. Thus Alexander Ortenberg wants all structures sat in one place. The rent preliminary contact with RE is already signed.

Advisers notice that the south of Moscow always used the raised demand at office tenants in comparison with other suburbs. “There are few qualitative office buildings at Lenin prospectus, at the same time, the area is arranged well and has good infrastructure. The specified office centre has the small sizes and good potential for successful tenancy”, - Lada Belaichuk, the assistant the head of department of researches of Cushman & Wakefield considers.