Israeli Industrial Building Corporation (IBC) submitted to St. Petersburg Governor Valentina Matvienko yesterday the project to construct multifunctional premises with the floor area of 1 million sq meters, which is the record for the city’s market of real estate. But this market of St. Petersburg, the analysts speculate, lacks stability and developing long-term projects of such extent is very risky there.

The St. Petersburg project of IBC sets forth constructing 600,000 sq meters of living space, a trade and recreation center of 200,000 sq meters and a business center of 150,000 sq meters. The remaining 50,000 sq meters will be taken by premises of social designation to be built for investor’s account and transferred to the city in the next move.

It will be the 25-storey to 27-storey building emerged at the area of around 40 hectares near the Pulkovo Avenue. The project of $900 million could be implemented during eight years, vowed IBC owner Eliezer Fishman.

In size, the IBC’s project on the Pulkovo Avenue will be pioneering in St. Petersburg, the market players speculate. “For foreign investors, constructing such buildings is of particular interest,” said Konstantin Kovalev, deputy general director at Okhta Group Development. “Big projects annually yield from 15 percent to 20 percent in Russia, which is materially higher than in Europe or the United States.”

News source: kommersant.com
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