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. Last Updated: 07/27/2016

Inteko Wins Tender to Create a New Suburb

Inteko, the construction giant owned by Mayor Yury Luzhkov's wife, Yelena Baturina, has won an open tender to build 955,000 square meters of housing next to Sheremetyevo Airport for an estimated $740 million.

City Hall's tender committee invited bids last week for the development of two large land plots that will form the new Molzhaninovo suburb -- a 76.5-hectare site on Mezhdunarodnoye Shosse and a 148.6-hectare site on Leningradskoye Shosse, located outside the Moscow Ring Road, or MKAD.

The winner was determined on the basis of the amount the company was ready to invest in the area's infrastructure.

Inteko won by offering $1.65 million for the smaller site and $3.4 million for the bigger one.

It is the first time Inteko has acquired a site for construction through a tender in Moscow.

"In the past we had to acquire plots on the secondary market or had to become co-investors in other people's projects," said Inteko spokesman Gennady Terebkov.

Terebkov said the company had a concrete plan on how to develop the sites, but could not elaborate.

According to the development plan approved for Molzhaninovo by the city in June 2003, the new suburb is to have townhouses, cottages and 16- and 17-story apartment blocks.

The project should be completed in three or four years, said Yury Roslyak, head of the city's economic development department.

"This is a very difficult city planning project. Besides its proximity to the airport and the need to deal with noise, there are transportation problems and a new industrial zone to be built nearby," a city construction official said.

The city is planning to relocate some of the factories located in the center to a specially created industrial zone, called PromCity, in Molzhaninovo.

"The only way to make this suburb profitable is to build the cheapest panel housing together with attractive infrastructure and improved access to Moscow," said Sergei Yeliseyev, head of marketing at Inkom Realty.

But Oksana Kaarma, deputy head of new construction at Miel Realty, said the project would be a success regardless.

"There is no room left to build economy-class housing in Moscow, and Inteko's reputation as a reliable builder will be an additional advantage for buyers," she said.

In 2003, Inteko built 530,000 square meters of housing and expects to complete 750,000 square meters this year. According to the company, as of July 1, its assets totaled 31.2 billion rubles ($1.07 billion).