Actuality November, 21, 2007

The company was set up in 2005. It is the property developer affiliate of Renova Group of Companies (net asset value is about $10 bln, the main shareholder is Viktor Vekselberg). Renova StroyGgroup specializes in projects of the integrated urban development (IUD) providing creation of modern housing estates with all infrastructure. The main regions of activity in Russia are Yekaterinburg, Chelyabinsk, Perm, Moscow region. The total cost of property developer projects is estimated at $100 bln. One of the largest is creation of Akademia City residential district for 325 thousand inhabitants in Yekaterinburg. It provides construction on a site of 2500 ha area of over 9 mln sq.m. of housing facilities and over 4,2 mln sq.m. of social objects, commercial and other real estate. The project cost is about $30 bln. In June, 2006 it was selected for participating in "Affordable housing" national project. Another well-known project is construction of chain consisting of 50 three star hotels in Russia . Investments’ volume is over $1bln.

In June, 2007 it became known that 22 property developer companies will get state subsidies within the framework of "Affordable housing" national project (program budget for 2006-2010 is over RUR 900 bln), mainly belonging to the large financial and industrial groups. Among them is Renova StroyGgroup controlled by Viktor Vekselberg’ Group of Companies. Program participants are obliged to construct no less than 1 mln sq.m. of housing facilities within ten years. Some questions about how set goals will be achieved answered Renova StroyGgroup president Veniamin Golubitsky.

• Will you attract co-investors from a number of property developers to Yekaterinburg?

• We will construct housing facilities independently attracting contractors. Concerning logistic center of about 240 thousand sq.m. total area and shopping and leisure center over 300 thousand sq.m. total area apt. m, provided by the construction conception of residential district, we intend to attract co-investors here. Thus a partner will have an opportunity to redeem the prepared object or site under it.

• How is such business profitable?

• It is an extremely attractive business. The greatest jump of prices for land at land development takes place after the conversion of land from the agricultural purpose category into the category of the settlements’ land. But I will not name you precise figures, in every region there are own indices.

• It was reported earlier that the investments’ volume in the hotel project would exceed $1 bln one third of which are personal facilities of Renova StroyGgroup. Who will invest the rest?

• We negotiate with some foreign funds that are ready to invest into hotels’ construction. Foreign investors will allow us to develop a financial strategy, not yielding to the western competitors. Renova StroyGgroup will settle matters concerned with land preparation and mutual relations with local authorities. This project will gather pace very quickly, because it is already clear to us where to construct hotels and in what amount. We plan to set up a separate company for the hotel project in the form of joint venture.

• Whether Renova is going to hold hotel objects in after their construction completion?

• We do business, but not collecting. We are not going to keep in the constructed hotels for long years. We create a product, pack and sell a strategic partner. By this scheme we will work in the segment of trade and office real estate. Separate companies that will be set up by Renova StroyGgroup with attraction of co-investors, will be engaged in the matters of these objects investment.