Sistema-Hals OJSC (LSE, MICEX, RTS: HALS), one of the largest diversified real estate companies in Russia and the CIS (Commonwealth of Independent States), has announced its strategic partnership with Saraya, a real estate development and asset management company that invests in the travel and tourism industry, to develop Saraya Sochi on the Black Sea in Sochi, Russia.
Saraya, through a wholly owned subsidiary has acquired 50% of the current mixed-use resort project on the site of the former Kamelia Hotel in Sochi. The existing development stretches over 6.3 hectares located uniquely in the central Sochi area.
Sistema-Hals and Saraya have come together to redevelop this site and turn it into another Saraya world-class destination. Saraya Sochi is envisioned to be a modern resort, including a high-end luxurious 5-star hotel and club-style apartments. It will also have beach access and luxurious beach amenities. The project will comprise approximately 95,000m² of built up area.
“Saraya is proud to announce its partnership with Sistema-Hals to develop Saraya Sochi as we consider Russia as a promising travel and tourism destination. In Saraya, we turn untapped locations into luxurious tourist destinations and we intend to showcase our involvement in Sochi, by developing a cutting edge mixed-use resort that welcomes tourists, visitors as well as investors to the host city of the 2014 Olympic Winter Games” said Mr. Ali Kolaghassi, Vice Chairman and CEO of Saraya Holdings.
“This project will enable us to combine our real estate development experience with Saraya’s financial resources and the know-how in resort construction and management industry to build a world-class resort in Sochi" says Sistema-Hals President Mr. Felix Evtushenkov.
The project sits on a unique green hill site overlooking a breath-taking view of the Black Sea. The project is a mixed-use resort on the beach front of the Black Sea, consisting of a five star hotel and residential units as well as entertainment and retail facilities. The hotel, which will be managed by a leading hotel operator, will contain at least 200 rooms equipped with the latest technologies built according to the highest standards. The hotel will also include a conference hall in Sochi that will host the main business, political and cultural activities in Southern Russia. The residential units will include over 400 open-plan elite and business-class apartments in a tower with cutting-edge design and several low-density buildings spread out within the forested hill side. Saraya Sochi will also house a premium sports and health centre with covered tennis courts, swimming pools, spa, solarium, sauna facilities, sports hall and fitness bar. The beach will be completely redesigned to include a summer restaurant, luxury relaxation and leisure facilities, retail kiosks, and areas for sports and games. The project will mostly preserve the forested areas including the over 100-year old trees dotting the spectacular landscape on the shoreline of Sochi.
JSC Sistema-Hals
Sistema-Hals is a leading diversified company in the Russian and CIS real estate market. The core businesses of Sistema-Hals are development, project management and construction, and facilities and property management. Sistema-Hals was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange. The company group FJSC Sistema holds a 71.1% stake and there is an 18% free float. Sistema-Hals is one of the largest companies by capitalization operating in Central and Eastern Europe real estate markets. Since starting its operations in 1994, Sistema-Hals has successfully completed more than 30 projects with a total area of about 300,000 square meters, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company and a hotel for the MaMaison chain (Orco Property Group). At present Sistema-Hals is constructing the Leningradsky Towers complex, which comprises two buildings, one of which will be the headquarters of Siemens in Moscow. It is also carrying out a complex redevelopment of the property portfolio of Moscow City Telephone Network, rebuilding the Hotel Peking and the flagship Children's World toy store near Lubyanka Square, and pursuing a series of other projects. Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The company strategy is focused on building class A and B office space, mixed-use retail and office complexes, business-class homes, residential estates and land development. Cushman & Wakefield valued Sistema-Hals' share of the properties and projects in its portfolio at USD 2,882 million as at 1 July 2007.
About Saraya
Saraya, established in 2005, is a Real Estate Development and Asset Management Company investing in the travel and tourism industry. Saraya’s vision is manifested in turning undiscovered natural, rich and unique locations into luxurious destinations. Saraya seeks to support the economic growth of the countries it invests in by developing projects that maximize shareholders’ value and contribute to local communities' sustainable development. Through its investment subsidiaries, Saraya has invested in Saraya Aqaba project, currently being developed in the Red Sea city of Aqaba, Jordan. While other projects - Saraya Islands in Ras Al Khaimah, United Arab Emirates; Saraya Dead Sea in the Dead Sea, Jordan; Saraya Bandar Jissah near Muscat in Oman; and Saraya Aktau on the Caspian Sea in Kazakhstan - are at various stages of development. Through strategic partnerships with public and private sectors, Saraya provides all facilities and services that a modern touristic city offers; including premium hotels, retail, entertainment, leisure and sport facilities, superb residential units while preserving the natural environment and local cultures.
Saraya has introduced a bouquet of customized services to complement its world-class destinations; granting all customers an unmatched and holistic experience. Saraya announced its first service, “Saraya Aviation”, a Private Jet Charter Operation which is designed at servicing individuals as well as large corporations, banks and government officials in addition to visitors, tourists and businessmen. Saraya Aviation's fleet will grant short and long distance trips, taking off and landing from any destination in the world, and will commence operations in June 2008. In September 2007, Saraya announced its second elite service for its customers, "Saraya Realty", a fully owned subsidiary of Saraya. "Saraya Realty" will be the exclusive property selling, leasing and re-sales arm for all Saraya's luxurious destinations mainly targeting both end users and second-home owners through a variety of product packages tailored to meet their utmost satisfaction, hence offering customers and investors multiple options for investing their money in the most convenient manner while adding value to their investments. For more information on Saraya Holdings, please visit www.sarayaholdings.com.
