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. Last Updated: 07/27/2016

Bank Petrovsky Will Be Focus of Complex

St. Petersburg -- A 25-floor office building for Bank Petrovsky is planned as the focal point of an A-Class business center comprising 150,000 square meters of office space to be completed by 2012, developer Setl City said in a statement.

Bank Petrovsky and Setl City have already begun construction at Malookhtinsky Prospekt to the east of the city center on the north side of the Neva River, near the proposed site of the new Gazprom-City development. As well as the new building for the bank, the area will also include more than 10 office buildings of eight to nine floors each.

Total investment in the project, one of the largest of its kind in the city, is estimated at $430 million, with the first part of the complex -- including the Bank Petrovsky offices -- to be completed by 2010.

"The office areas will be in demand because of the shortage of A-Class business centers in St. Petersburg," Setl Group general director Vasily Selivanov said.

"All existing A-Class office areas in the city are accumulated in separately located business centers. So our business area will have the additional competitive advantages of centralized planning and a unified concept," Selivanov said. "It will offer large office areas, a comfortable location, parking spaces and good access to transport to the city center."

Selivanov also said the business park would be completed sooner than other projects of a similar type that have been announced.

Plans for the area were laid out by St. Petersburg architectural firm Yevgeny Gerasimov & Partners and property management company Choban & Associates.

"We didn't choose this place for construction of the new office center by chance. There are not only geographical and transport advantages to the area, but there is also the possibility of creating a unique business environment for our clients and partners," Bank Petrovsky chairman Alexander Saveliyev said.

"We are confident that this project will modernize the Neva Embankment and fit well into the city's architectural fabric," he said.

Setl City is part of Setl Group holding, and, as agreed on in plans for the development, another Setl Group subsidiary -- Praktis -- will manage and maintain the office areas once they have been completed.

Real estate experts say Setl City should be in demand considering the proposed features of the project and current market requirements.

"Existing height limits considerably affect the payback period for construction projects and their profitability," said Dmitry Zolin, managing partner of London Consulting & Management Company.

The average profitability of business centers in St. Petersburg is between 14 percent and 17 percent per year. The normal payback period varies from six to eight years, Zolin said.

"Setl City's goal of constructing a 25-floor business center is quite natural. By doing so, they can shorten the payback period and increase profitability because of larger areas available for lease," Zolin said.