Privately owned real estate company LSR Group has won a tender to redevelop the defunct ZiL automobile factory complex in southern Moscow, one of the biggest construction projects in the city, with a 28 billion ruble ($790 million) bid.
LSR outbid a company affiliated with billionaire Viktor Vekselberg to buy from the city 100 percent of Promobyekt, which owns 65 hectares of land in the ZiL industrial zone, according to a press release published Monday on City Hall's website.
The starting price was 23.4 billion rubles.
LSR will build 1.56 million square meters of real estate on the site — the equivalent of 24,000 65-square meter apartments — after first demolishing buildings covering a 27.65 hectare area. The company will also build six kindergartens and hand over a part of the land to City Hall for the development of transport, social and engineering infrastructure.
Construction is slated for completion by the end of 2022.
Aside from the 28 billion payout, LSR will also pay 14.9 billion rubles for permission to change the designation of the land to allow residential and commercial building.
ZiL is the first of Moscow's derelict industrial zones for which City Hall has drawn up a comprehensive planning project. Altogether, city authorities plan to redevelop a 470-hectare area encompassing both the former factory and adjoining areas. The project envisages creating 43,200 jobs and building housing for 38,300 people, as well as social and sports infrastructure, parks, train and metro stations and a new, modern industrial complex by 2025.