Bonava Bonava

Bonava is a Swedish housing developer and one of the leading companies in this segment in Northern Europe. Continuing the history of the NCC, Bonava has been building homes and uniting neighbors since the 1930s. Bonava employs 1,600 people. The company is represented in eight markets: Sweden, Germany, Finland, Denmark, Norway, St. Petersburg, Estonia and Latvia. In 2016, the company's turnover amounted to 1.4 billion euros. Bonava shares are listed on the Stockholm Nasdaq exchange.

History

2023

Bonava sold Russian assets to Star Development of Armenia; deal with RBI fell through

Armenian Star Development bought the Russian business of the construction company Bonava, which the press service of the latter reported on October 18, 2023. Thus, the deal with RBI Group fell through, although it has already been approved by the Federal Antimonopoly Service (FAS).

According to the press service of Bonava, the value of the transaction for the sale of Russian assets of the developer to the Star Development group amounted to 50 million euros. Moreover, the money has already been transferred, and the buyer, in turn, has secured permission for the transaction from a special commission overseeing the transfer of the business.

Star Development bought the Russian business of the construction company Bonava

The sale of the asset must still be approved by the FAS. This is expected to happen in the fourth quarter of 2023.

After the sale is completed, this transaction will bring a profit of approximately SEK 550 million (about 2.3 billion rubles at the exchange rate as of October 19, 2023), Bonava said in a statement.

The RBI was unable to obtain approval to purchase the assets from the government's Foreign Investment Control Commission and the agreement was terminated, Bonava said.

Prior to that, Bonava's Russian business intended to buy Kazan G-Group, which later withdrew from the deal, explaining that "in a dynamic external environment, it plans to switch resources to other projects."

Bonava was created as a result of the separation of a housing division from the NCC holding (Sweden) into a separate business. By October 2023, the company is represented in Sweden, Germany, Finland, Denmark, Norway, Russia, Estonia and Latvia. In Russia, Bonava has projects on the residential real estate market in St. Petersburg and the Leningrad Region. Before the developer decided to sell his Russian assets, his land bank totaled about 16 hectares located in various areas of St. Petersburg.^[1]

RBI group bought Bonava's Russian business

On June 2, 2023, it became known about the sale of Bonava's Russian business to the RBI development group for 3.3 billion rubles.

The deal depends on the approval of the authorities. Under current conditions, permitting represents a complex process that is expected to be completed during the third quarter of 2023. The transaction will not be reflected in Bonava's earnings before closing and payment, after which the amounts will be finalized and reported, Bonava said in a statement.

RBI group bought the Russian business of the Swedish developer Bonava

Experts interviewed by Kommersant call the published amount of the deal with RBI discounted. The publication notes that the sites of the Swedish company have heterogeneous quality and require additional training.

RBI is one of the few companies that are ready to spend time and resources working with small plots, since they sell housing at a premium to the market, said development expert Andrei Veresov. Basically, St. Petersburg developers prefer to buy larger sites and not get involved.

By June 2023, the best time for such transactions, given the shortage of land plots for development in good locations, is sure the managing partner of Fizika Development Alexander Kravtsov.

According to the Unified Resource of Developers, Bonava has 51.5 thousand square meters under construction by the beginning of June 2023. M in Russia. In addition to the Russian market, Bonava operates in Germany, Sweden, Finland, Norway, Estonia, Latvia and Lithuania.

RBI is engaged in the construction of elite and business-class residential complexes in St. Petersburg, and is also developing a network of apart-hotels Artstudio. By the beginning of 2023, the developer's portfolio of promising projects amounted to 1 million square meters. m of real estate. The owner of the group is its president, Eduard Tiktinsky.^[2]

2022: G-Group announced the purchase of Bonava's business in Russia, but the deal fell through

Kazanskaya G-Group bought the Russian business of the Swedish construction company Bonava, which was announced on October 10, 2022. The transaction is worth 1.1 billion kronor (98 million euros).

{{quote 'The decision to leave Russia was made taking into account the geopolitical situation. It was important to find an option that takes into account the safety of our employees, our clients and business in general - this transaction takes into account all these factors, - said Peter Wallin, President and CEO of Bonava, through the press service. }}

Kazanskaya G-Group bought the Russian business of the Swedish construction company Bonava

The losses of the Swedish developer after the termination of activities in Russia will amount to 27 million euros (from 0.1 to 0.3 billion Swedish crowns). The company says that the group's visible share capital will remain virtually unchanged, and its financial position will strengthen even more.

By October 2022, G-Group owns the residential real estate developer Unistroy and the commercial property developer UD Group. The developer Bonava in March announced its intention to stop working in Russia. At the end of July 2022, it was reported that Bonava St. Petersburg LLC continued to operate in full, but was looking for the optimal format for leaving the Russian market.^[3]

Notes