Bonava shifts course on St. Petersburg assets amid new buyer agreement
Swedish developer Bonava has restructured its plans for its St. Petersburg holdings. After previously negotiating a sale with the RBI group of Russia, the company terminated that arrangement and instead entered into a new agreement with Armenian developer Star Development. Bonava disclosed this change through an official press release.
According to Bonava’s press release, the buyer obtained approval to proceed from a dedicated company committee. The firm expects the final clearance from Russia’s antimonopoly regulator in the fourth quarter of 2023. Bonava also noted that it has already received an advance payment of about 50 million euros from Star Development, and that a projected profit of roughly 550 million Swedish kronor would be realized upon successful completion of the deal.
Earlier in the year, a separate plan to sell assets in St. Petersburg to the RBI group for €3.3 billion was announced in May. That agreement did not move forward after the Bonava special committee declined to approve it. Bonava subsequently indicated it would withdraw from the Russian market in March. The negotiations with RBI ultimately led to the shift toward Star Development in St. Petersburg, marking the third attempt by Bonava to divest the city’s assets. The sequence highlights the strategic reevaluation undertaken by the company as it navigated regulatory and market considerations in Russia.
In related developments, the ownership of a Novatek subsidiary in Poland changed hands at the start of October, with a subsequent shift in corporate arrangements. The broader pattern in the region reflects ongoing realignment of property and business interests across multiple markets, underscoring the importance of regulatory oversight and market access for cross-border real estate activities.
Additionally, a note on market exits follows recent corporate moves: VEON, the telecom holding that previously owned VimpelCom, exited Russia following the completion of its asset sales. These movements illustrate a broader trend of strategic realignment by multinational groups as they adjust to evolving regulatory environments and geopolitical considerations in the region. The Bonava development and the Vega/VimpelCom-VEON transitions collectively point to a shifting landscape where corporate portfolios are rebalanced to fit long-term strategic objectives while seeking regulatory alignment and financial efficiency. Citations: Bonava press release; public market disclosures; regional industry analyses.