15 August 2013
Finnish real estate developer SRV Group Oyj has seen revenues jump thanks to mall projects in Russia.
SRV’s second-quarter net income rose to $17.5m from $1.9m last year.
"Our decision to focus in Russia on developing, building and commercialising shopping centres has proved to be an excellent choice," said CEO Jukka Heinonen.
The company has adjusted its profit estimates upward and now expects its 2013 revenue to exceed $931m.
Construction of the Pearl Plaza mall and other developments are credited for SRV’s increased revenue in 2013 (Colliers International)
Most of the extra revenue came from the construction of the Pearl Plaza shopping centre in St. Petersburg, which was 50% owned by SRV, and the sale of a 55% stake in the Okhta Mall project in June, the company said.
The availability of competitive Russian financing as well as good demand for business premises also supported the projects, SRV said.
Source: Bloomberg Businessweek