Moscow, 3 April 2007 - Today Deutsche Bank and STRABAG announced the creation of a joint venture (the ‘JV’) aimed at development and financing of a wide range of large scale real estate and infrastructure projects in Russia & CIS.
In addition to Deutsche Bank and STRABAG, Dmitri Garkusha will be appointed General Director of the JV with the overall responsibility for day-to-day operations.
In the framework of this joint venture, the JV partners will leverage their vast experience in the field of financing, construction and real estate development. The JV will pay particular attention to private public partnership approaches to realisation of infrastructure projects. Deutsche Bank will be primarily responsible for arranging the financing; STRABAG will be in charge of the construction and development activities. The JV’s strategic objective is to achieve a sustainable leadership position in the development market in Russia & CIS countries.
STRABAG is a leading international building and construction company (turnover c. EUR 10.5bn per annum) with a well-established franchise and over 15 years presence in the region. Deutsche Bank is one of the largest foreign banks in Russia, offering a wide range of financial services to its clients.
Deutsche Bank and STRABAG are Russia’s top players in the areas of finance and construction respectively. Deutsche Bank’s participation in the new JV goes in line with further strengthening its positions as a premier financial institution for financing major projects in the Russian real estate development sector. Having Deutsche Bank as a strategic partner enables STRABAG to significantly reinforce its leading market position and strengthen its projects pipeline.
Russia is seen as a key strategic market by both Deutsche Bank and STRABAG, in line with realisation of their development strategies. By creation of the JV, they will further strengthen their strategic co-operation and expand their presence in Russia.
All the major strategic decisions will be made by a Shareholder Committee consisting of two Deutsche Bank representatives, two representatives from STRABAG and Dmitri Garkusha. Deutsche Bank representatives will be Yuri Soloviev and Victor Makshantsev. STRABAG representatives will be Alexander Ortenberg and Gerhard Gritzner. Yuri Soloviev will be appointed the JV’s Chairman of the Shareholder Committee.
Yuri Soloviev, Member of the Board, Head of Global Markets in Russia & CIS at Deutsche Bank commented: “We are excited about rapidly growing Deutsche Bank business in Russia & CIS and consider the Real Estate and Development sector as one of the key elements in realizing our strategy in this market. Creation of the joint venture with STRABAG will significantly strengthen the Bank’s presence in the sector and enable us to fulfil a number of the most interesting development projects in Russia and CIS”.
According to Victor Makshantsev, Director, Head of Russia & CIS Real Estate at Deutsche Bank: “Formation of the joint venture with STRABAG is a key milestone in rolling out our strategy in the development market in the region. Creation of the JV will give Deutsche Bank a major competitive advantage and further contribute to successful realisation of the Bank’s strategy in this sphere. Furthermore, the JV’s activities will provide a solid platform to boost international capital inflow into the sector.”
Alexander Ortenberg, STRABAG Managing Director for Russia / CIS countries, said: ”STRABAG has been successfully working on the Russian market for more then 15 years now and creation of the joint venture with Deutsche Bank is a landmark sign of our commitment to this market place in the long term. On the back of this joint venture we will continue providing top international quality construction and development services to our clients across the region.”
Gerhard Gritzner, Member of the Board of STRABAG AG, Managing Director for Russia / CIS countries, adds: “STRABAG also possesses a long term track record of successful operations in Moscow real estate sector – in both developing its own projects and managing and maintaining them».
Dmitri Garkusha, commented: “Having worked closely with both STRABAG and Deutsche Bank on the realisation of a number of major projects in Moscow I am convinced that the joint efforts of these two institutions towards effective realization of the large scale and complex projects in development sector will create a new recognised leader in the region. Overall, I think this is very positive news for the market as well since this joint venture will be using the best international financing and development standards and thus stimulate further investments growth in the sector”.
The completion of the JV is subject to standard antitrust and other official approvals which are expected in due course.
For more information please call:
+7 (495) 797 5303
About Deutsche Bank
With Euro 1,128 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.
Deutsche Bank Ltd. (Deutsche Bank Moscow) was established in April 1998. The Bank is a wholly-owned subsidiary of Deutsche Bank AG. Deutsche Bank Moscow has become one of the largest foreign banks in Russia. Deutsche Bank Moscow provides local and international, corporate and private clients with a broad range of financial services, comprising corporate finance and advisory, sales, trading, transaction banking as well as private wealth management and asset management services. The Bank includes the largest Russian and multinational companies among its client base.