Glorax Group announces the sale of the road-building assets in favor of development projects

As part of the strategy change, Andrey Birzhin’s group will refuse to participate in future tenders for the state road-building contracts, and the non-core assets for the group, including one of the largest road-building enterprises OJSC “Mosavtodor and Partners”, will be implemented in favor of strengthening the core business of the group – building the real estate facilities.

As the CEO Glorax Group Aleksander Andrianov said, the main aspect of the strategy change became a decrease in the group’s interest against the background of ambitious construction plans. “Road building was not originally a priority for us. For more than two years, we have not worked with state contracts. The proceeds are planned to invest in the purchase of sites in Moscow for the development aims,”- said Mr. Andrianov.

The “Mosavtodor and Partners” enterprise was established in 1991 to coordinate the activities of the road organizations in the Moscow Region, centralized provision of their construction materials and machinery, the introduction of new technologies and materials into production. The society founders of the society were the State Administration “The Motorway Administration of the Moscow Region “Mosavtodor”” and more than 60 road organizations of the capital city region. In the future, “Mosavtodor and partners” became the founder of more than ten road and bridge building organizations in the Moscow Region.

For two decades, the company “Mosavtodor and Partners” coordinated the full scale of the road-building works in the Moscow region, implemented works on the construction, reconstruction of highways and artificial structures in the Central, North-Western and Southern Districts of the Russian Federation.

The implemented projects include a railway overpass on the Moscow-Tuma-Kasimov (Egoryevskoye Shosse) highway near the village of Khripan in the Ramenskiy District, an open tunnel with two Moscow-Yaroslavl highway overpasses near Sergiyev Posad, the Gorky railroad overpasses in the cities of Orekhovo-Zuevo and Fryazevo, as well as a 220-meter bridge over the Moscow Canal in the city of Yakhroma. Transport interchanges on the Dubinino-Obukhovo highway in the Solnechnogorsk District and in the city of Kashira, as well as in Lyubertsy, have been built. The enterprise reconstructed a complex of structures on the territory of the Vnukovo international airport, which includes a three-kilometer artificial runway with sections of taxiways and aprons.

The key production facility is the branch “Vnukovo Road Enterprise”, located in Vnukovo on the site with an area of 4 hectares. The branch has its own railway dead-end track for 20 wagons, three asphalt concrete plants capable of producing the entire range of asphalt-concrete mixtures with a capacity of 510 tons per hour, bitumen storage, silos for storing more than 400 tons of mineral powder, and storage tanks for diesel fuel.

According to some analysts, the value of the Glorax Group’s road assets is 1-1.5 billion rubles. The investment attractiveness is caused by the plans of the Moscow government to develop the transport infrastructure of the annexed New Moscow territories, with the reconstruction of existing highways and construction of new ones, as well as the section of the Central Circular Road, traffic interchanges with an increase in the length of the street-road network by 50% by 2035. Among the implemented facilities by Glorax Group, the most attractive is a road company located in the Vnukovo District of the Moscow NWAD, in the immediate vicinity of the New Moscow Administrative District.

At the beginning of March 2017, at the Moscow Government Presidium Meeting, it was approved the introduction of changes to the city master plan, concerning the development of new territories. The document paid much attention to the development of the New Moscow transport infrastructure. The development of the street-road network according to the master plan includes the development of a set of radial directions, transport interchanges, including four railway overpasses. Also, in the transport network of the territory of Troitsk and New Moscow administrative districts (TNMAD), a system of transverse directions will be created. The length of the street-road network by 2035 will increase by 627 kilometers and amount to more than 2 thousand km. For the integrated development of the main types of passenger transport in the master plan it is planned to create 25 transport interchange hubs.

In total, more than 1 trillion rubles will be required to form a modern road and transport infrastructure in the TNMAD, until 2035. About 600 billion will go for road building and reconstruction, and about 263 billion will be spent on the underground building. The number of roads to be reconstructed in the first place includes the key highway of New Moscow – Kaluzhskoe highway (the first stage of reconstruction was completed in 2016, and the second stage will be completed in 2018) and a number of cross-road-junctions between the radial routes of the annexed New Moscow lands. Finally, the main priority will be the building of the Central Curcular Road (CCR).

After leaving the road assets, the company will focus on the implementation of the projects in the field of real estate building and the development of infrastructure projects. As the Glorax Group founder Andrey Birzhin, has earlier stated, about 450 thousand square meters are now under construction in St. Petersburg and the Moscow Region, and in the current projects’ portfolio – 1 million square meters with the prospect of an increase, which will allow the construction business of the group – Glorax Development – within a few years to enter the top five of the largest federal developers.