LSR Group sells land plot to Gazprom
11 March 2011
OJSC Rudas, a subsidiary of LSR Group (LSE: LSRG; MICEX, RTS: LSRG) sold a land plot of 140 th sq.m in the Primorsky district of St. Petersburg near the city boundary to CJSC Public and Business Area Okhta Center (a subsidiary of Gazprom) . This area was previously used as a sand storage facility.
CJSC Public and Business Area Okhta Center plans to construct a business centre for Gazprom-neft and other Gazprom subsidiaries on the acquired site.
Alexandr Vakhmistrov, Chief Executive Officer of LSR Group, comments:
“This transaction was beneficial for us. The sold land plot was previously used a sand storage facility but without this site our sand storage capacity is sufficient. Also, according to the land use and development regulations, approved several years ago, this area could no longer be used for industrial purposes. We are glad that Gazprom found this land plot attractive for its project”.
The sold land plot was a part of LSR Group's building materials operations, therefore it was not included in the real estate portfolio of the company which was evaluated by DTZ, the independent international appraiser.
Note to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2009, the sales revenues of LSR Group were RUB 51,024 million (IFRS).
LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.
OJSC Rudas was founded in 1976, since 1997 – it is a subsidiary of LSR Group. Today Rudas is a group of companies extracting, transporting, storing and selling sand, almost fully covering the needs of the construction sector in St. Petersburg and the Leningrad region.
The company supplies sea sand, quarried mining sand and quarried inwash sand as well as ground sand.
Currently OJSC Rudas extracts and processes quarried sand from nine quarries, and sea sand – from four quarries.