Deripaska Expands Construction Stakes
Basic Element and RusAl owner Oleg Deripaska has taken control of the Razvitiye construction firm, leaving Deripaska in control of one-third of the Moscow building market, First Deputy Mayor Vladimir Resin said.
"In addition to Razvitiye, Basic Element acquired all of the enterprises owned by [Razvitiye]," Resin said. Basic Element declined to comment on the deal.
Razvitiye, founded in 1995, owns three large companies -- Glavmosstroi, Mospromstroimaterialy and Mosmontazhspetsstroi. Glavmosstroi has more than 70 subsidiaries, from development bureaus to mortgage companies. Mos-promstroimaterialy, or MPSM, controls 50 percent of the Moscow market in building materials and works as an investor and contractor. Mosmontazhspetsstroi, or MMSS, is involved in the production of engineering equipment for residential buildings.
Basic Element is already working as a developer through the company BEL-Development. It is building office centers in Samara and Novosibirsk, and is renovating the Rodina sanatorium in Sochi. The size of its investment portfolio is over $100 million. Including its stake in RusAl, Basic Element is valued at $12 billion.
Basic Element officially announced last week the acquisition of a controlling stake in Glavmosstroi, although it declined to name the seller.
A source close to Razvitiye said Basic Element bought 51 percent of the firm from the owner of Nafta Moskva, State Duma Deputy Suleiman Kerimov. Kerimov took Razvitiye over in February, Razvitiye"s then-general director, Vladimir Kuznetsov, said at the time.
Neither Razvitiye nor Nafta Moskva could be contacted to comment on the Basic Element deal.
In June, Razvitiye"s office, on Granatny Pereulok, was stormed by 200 men who described themselves as the new owners and made Kuznetsov and his team leave the building.
MPSM president Yevgeny Sklyarov explained that after the deal was finalized, the main shareholders of Razvitiye would be Basic Element and MPSM, which owns 34 percent of Razvitiye.
Sklyarov said that Razvitiye in turn would own a controlling stake in MPSM and MMSS. He was unable, however, to say how much Basic Element had paid for control of Razvitiye, which has said it has a turnover of $1.5 billion. Market players estimated the price at $500 million.
"Although it is possible that Deripaska got a discount for acquiring the shares of the three companies at once," one expert said.
"Basic Element is getting ready to develop industry and building, and this can only be welcomed," Sklyarov said.
Market participants said they had not yet heard of any significant real estate projects from Deripaska.
"In addition to Razvitiye, Basic Element acquired all of the enterprises owned by [Razvitiye]," Resin said. Basic Element declined to comment on the deal.
Razvitiye, founded in 1995, owns three large companies -- Glavmosstroi, Mospromstroimaterialy and Mosmontazhspetsstroi. Glavmosstroi has more than 70 subsidiaries, from development bureaus to mortgage companies. Mos-promstroimaterialy, or MPSM, controls 50 percent of the Moscow market in building materials and works as an investor and contractor. Mosmontazhspetsstroi, or MMSS, is involved in the production of engineering equipment for residential buildings.
Basic Element is already working as a developer through the company BEL-Development. It is building office centers in Samara and Novosibirsk, and is renovating the Rodina sanatorium in Sochi. The size of its investment portfolio is over $100 million. Including its stake in RusAl, Basic Element is valued at $12 billion.
Basic Element officially announced last week the acquisition of a controlling stake in Glavmosstroi, although it declined to name the seller.
A source close to Razvitiye said Basic Element bought 51 percent of the firm from the owner of Nafta Moskva, State Duma Deputy Suleiman Kerimov. Kerimov took Razvitiye over in February, Razvitiye"s then-general director, Vladimir Kuznetsov, said at the time.
Neither Razvitiye nor Nafta Moskva could be contacted to comment on the Basic Element deal.
In June, Razvitiye"s office, on Granatny Pereulok, was stormed by 200 men who described themselves as the new owners and made Kuznetsov and his team leave the building.
MPSM president Yevgeny Sklyarov explained that after the deal was finalized, the main shareholders of Razvitiye would be Basic Element and MPSM, which owns 34 percent of Razvitiye.
Sklyarov said that Razvitiye in turn would own a controlling stake in MPSM and MMSS. He was unable, however, to say how much Basic Element had paid for control of Razvitiye, which has said it has a turnover of $1.5 billion. Market players estimated the price at $500 million.
"Although it is possible that Deripaska got a discount for acquiring the shares of the three companies at once," one expert said.
"Basic Element is getting ready to develop industry and building, and this can only be welcomed," Sklyarov said.
Market participants said they had not yet heard of any significant real estate projects from Deripaska.