O1 Group, a Boris Mints’ private holding company that invests in a variety of companies and sectors, has announced the purchase of a new share issue of Vesper, a company specialising in premium residential projects, including renovation of historic buildings. The value of the transaction is US$100 million. O1 Group will own a 70 percent stake in Vesper with the remaining 30 percent being retained by the founders of the company – businessmen Boris Azarenko and Denis Kitaev. The investment will form part of Vesper’s equity capital and will be used towards new projects.
Vesper’s portfolio includes a number of premium club format developments in the centre of Moscow, such as Gulrich House in Prechistenskiy Lane, Bulgakov in Patriarchiyi Ponds, St. Nickolas on Nikolskaya Street and a new project in Kursoviy Lane. According to the estimate by Knight Frank, consultants to the transaction, at the time of purchase the company’s portfolio was valued at US$60 million.
O1 Group is a private holding company founded in 2004 by Boris Mints. At present O1 Group’s portfolio includes assets in commercial real estate, industry and financial sectors.
Marina Rudneva, General Director of O1 Group commented: “The field in which Vesper operates is full of potential. Vesper is involved in the construction of premium club format housing and the renovation of historic buildings, transforming inefficiently used buildings into elite housing developments. The prime location of Vesper’s projects, the involvement of leading Russian and international designers and architects, together with the use of state-of-the-art building and renovation technologies, guarantee that there will be stable demand for the company’s projects. We believe that this business is a good investment for O1 Group, both in terms of profitability and in terms of diversifying our portfolio and gaining expertise in the premium residential real estate market.”
Boris Azarenko, General Director and joint owner of Vesper said: “Such a powerful partner as O1 Group will allow Vesper to expand its portfolio of quality projects and become one of the leading players in the most premium segment of the elite housing market. At present Vesper is in a state of dynamic development. In the last two years we have started three new projects, one of which is now fully finished. Our strategy involves buying 2-3 new sites a year and we already know where the funds we received from our partner are going to be used. In the very near future we will announce the start of new projects.”
Andrey Petrov, Partner, Deputy General Director, Knight Frank Russia & CIS observes: “Vesper today is a successful and efficient business venture with a fully formed portfolio of high quality projects of high demand and a clear intention to actively expand it. The company is unique in a number of respects and both the company and the segment in which it works have justly earned their right to be called high potential. Having allied itself with such a serious real estate market player as O1 Group, Vesper has undoubtedly acquired a trustworthy and experienced partner. I am confident that this partnership will be beneficial for both parties.”
