Expanded Strategy as Sminex Explores Ingrad Acquisition

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Alexey Tulupov’s Sminex group, known for its high-budget residential developments in Moscow, has reached an agreement to acquire the development business of Ingrad. The talks have been described by two insiders familiar with the discussions and reported by RBC. The proposed deal signals a strategic move for Sminex to broaden its footprint in the Moscow housing market by adding Ingrad’s development portfolio to its existing capabilities.

The transaction is estimated to be in the range of 35 to 40 billion rubles, with Sberbank anticipated to provide a financing line to support the deal. Representatives from Ingrad and Sminex have declined to comment publicly on the negotiations, leaving market observers to piece together the potential implications for both players and the broader Russian real estate sector.

Ingrad is among Russia’s top 20 developers, with current construction activity totaling about 712 thousand square meters. When including completed projects, the company’s total portfolio exceeds 2.5 million square meters. A controlling stake in Ingrad is held by the Rossium group, led by Roman Avdeev and Sergei Sudarikov, highlighting the deal’s alignment with a broader set of real estate and investment interests.

Industry experts view the proposed acquisition as a portfolio diversification move for Sminex. The anticipated strategy appears to center on strengthening exposure to business-class and premium residential segments, while potentially disposing of non-core assets to streamline operations and improve capital efficiency. From a financial standpoint, IFRS data for 2023 indicated a contraction in Ingrad’s revenue, dipping by about a quarter to 63.4 billion rubles, alongside a 19 percent drop in net profit, down to roughly 785 million rubles. These figures underscore the competitive pressures in the market and the importance of strategic repositioning within a sizable development pipeline.

Meanwhile, broader regional activity in the defense sector drew attention last week as Rheinmetall signaled concerns related to a separate transaction. The German defense contractor announced the acquisition of the American firm Loc Performance Products for approximately $950 million. The deal is expected to strengthen Rheinmetall’s foothold in the United States defense market and expand production capacity for ground vehicles intended for military use, illustrating how corporate consolidation can cross industry boundaries and influence supply chains across continents.

Earlier in the year, Paramount, another prominent player, faced challenges in moving certain assets. While the specifics of that situation vary, the underlying theme remains clear: market dynamics, financing conditions, and strategic repositioning continue to shape corporate trajectories in both real estate and defense-related manufacturing. The incoming ownership shift at Ingrad could become a catalyst for broader strategic alignments within the Russian property sector, with attention focused on how Sminex manages its expanded portfolio, navigates regulatory considerations, and leverages synergies across its current development programs. In this evolving landscape, investors and industry watchers will monitor performance indicators, including project delivery timelines, absorption rates in premium segments, and the capital structure required to sustain an enlarged, diversified platform.

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