Stroymontazh

Stroymontazh was a Russian construction and real-estate development company headquartered in Saint Petersburg. Founded in 1994 by Artur Kirilenko and Sergei Polonsky, it initially carried out construction, renovation, and contracting work on existing residential properties. During Russia's mid-1990s non-payments crisis, the company sometimes received apartments as barter-like compensation from developers facing liquidity shortages. This exposed Stroymontazh to the marketing and sale of residential property and helped it build an internal sales capability. In 1996, the company moved into its first full-cycle development project, constructing an apartment building in the suburbs of Saint Petersburg. Between 1995 and 1998, it also acted as a general contractor for leading local developers. By the end of the decade, Stroymontazh had evolved from a contractor into a developer with its own investment portfolio. Around 2000 it operated as a corporation with projects involving entire residential districts, an architecture practice, construction divisions, and building-materials activities. The company expanded geographically and organizationally during the early 2000s. A Moscow subsidiary was opened in 2000 under the leadership of Sergei Polonsky, while Kirilenko focused on the Saint Petersburg business. The two founders later divided their interests. Polonsky used the Moscow operation as the basis for Mirax Group in 2004 and left Stroymontazh, after which Kirilenko became the company's principal owner and chief executive. Stroymontazh grew rapidly during the 2000s. It completed six buildings totaling approximately 55,000 square metres in 1999, delivered about 120,000 square metres in Saint Petersburg in 2002, and reached roughly 320,000 square metres of construction activity in 2003, with around 20 projects running simultaneously. Its portfolio eventually included more than 800,000 square metres of residential property and approximately 60,000 square metres of commercial space. Major Saint Petersburg developments associated with the company included Petrovsky Fort, Fifth Element, Monblan, Academy, and Zvezdny. Through its subsidiary Hermitage SAS, the group also pursued a roughly 110,000-square-metre residential development on the outskirts of Paris. The 2008 financial crisis severely affected the company's financing and the wider Russian construction market. Stroymontazh reported selling approximately 286,000 square metres of residential property during 2008, while its overall development portfolio was described as about 1.5 million square metres. The company also reported revenue of approximately 2.1 billion roubles and profit of 6.9 million roubles for the first nine months of that year. As liquidity conditions deteriorated, a dispute developed with Baltisky Bank, one of Stroymontazh's creditors. The bank reportedly increased interest rates on existing loans and sought early repayment, leading to litigation and a broader corporate conflict. Stroymontazh filed for bankruptcy in 2009, describing the filing as a protective measure intended to safeguard private-equity participants and homebuyers in shared-equity projects. In 2010, a court granted the bankruptcy application and the company entered bankruptcy administration; Kirilenko resigned as president. Materials summarized in the Wikipedia account state that the company had completed its residential construction projects and met obligations to homebuyers under shared-equity arrangements before or during the insolvency process. Most creditor relationships were reportedly restructured, although Baltisky Bank did not accept the proposed restructuring. Claims against Kirilenko connected to the dispute were declined by the courts, and criminal proceedings were dropped in 2011 after an inquiry found no evidence of criminal conduct. Stroymontazh remained in bankruptcy administration for approximately five years and was struck from the Russian Companies Register on 14 July 2015. It is therefore a defunct company rather than an active construction brand.

Stroymontazh was established in 1994 by Artur Kirilenko and Sergei Polonsky. Its initial business consisted of construction and renovation work on existing residential properties. The Russian non-payments crisis of 1994–1995 created severe liquidity problems for developers, some of whom compensated contractors with apartments rather than cash. Stroymontazh consequently developed experience in selling residential units and built a dedicated sales capability. The company entered full-cycle development in 1996 with an apartment project in the suburbs of Saint Petersburg. From 1995 to 1998 it also worked as a general contractor for prominent local developers. By 1998–1999, Stroymontazh had developed its own investment portfolio and was transitioning from contractor to property developer. By 2000, it had become a corporation involved in new residential districts in Saint Petersburg, supported by an architecture firm and divisions dealing with construction and building materials. Expansion followed at the start of the 2000s. Stroymontazh opened a Moscow subsidiary in 2000, headed by Polonsky, while Kirilenko concentrated on Saint Petersburg. The founders divided the business in 2002. Polonsky later used the Moscow operation as the foundation for Mirax Group, which he formed in 2004. Following the separation, Kirilenko became Stroymontazh's principal owner and chief executive. The company grew substantially during the decade. It completed six buildings totaling 55,000 square metres in 1999, built approximately 120,000 square metres in Saint Petersburg in 2002, and reached about 320,000 square metres in 2003 while running approximately 20 projects. Its development work included residential buildings, larger apartment complexes, commercial property, and projects combining development and construction services. The company's Saint Petersburg portfolio included Petrovsky Fort, Fifth Element, Monblan, Academy, Zvezdny, and other developments. Its international activities included a Hermitage SAS project for approximately 110,000 square metres of residential property near Paris. The global financial crisis of 2008 exposed the company's dependence on construction finance and property demand. Stroymontazh was reported to have sold 286,000 square metres of residential property in 2008, with a total project portfolio of approximately 1.5 million square metres. It also reported nine-month revenue of 2.1 billion roubles and profit of 6.9 million roubles for that year. As the construction sector faced a liquidity shortage, a serious disagreement developed with Baltisky Bank, a creditor. The bank reportedly raised interest rates on existing loans and sought repayment before contractual maturity. Litigation followed in 2009, including claims involving Kirilenko as a guarantor. Stroymontazh filed for bankruptcy in 2009 and characterized the proceeding as necessary to protect homebuyers and private-equity investors from the creditor conflict. In 2010, the court approved the application and placed the company under bankruptcy administration. Kirilenko resigned as president. The account summarized in the Wikipedia article states that, by the beginning of insolvency proceedings, Stroymontazh had completed its residential projects and fulfilled its obligations to homebuyers participating in shared-equity schemes. It had also restructured obligations to most of its creditor banks, while Baltisky Bank rejected the restructuring offer. An inquiry reportedly concluded that transactions involving company assets before administration had economic justifications and found no evidence of fraudulent preferences, concealment of assets, or other criminal conduct. Litigation claims against Kirilenko were rejected, and criminal charges were dropped in 2011. The bankruptcy administration lasted approximately five years. On 14 July 2015, Stroymontazh was removed from the Russian Companies Register and was considered wound up. The company is consequently a historical, defunct construction and property-development brand.

• 2015

  Dissolution

  [1]Stroymontazhen.wikipedia.org

  The company was struck off the Russian Companies Register on 14 July 2015.

• 2010

  Bankruptcy administration

  [1]Stroymontazhen.wikipedia.org

  A court approved the bankruptcy application and the company entered administration.

• 2009

  Bankruptcy filing

  [1]Stroymontazhen.wikipedia.org

  Stroymontazh filed for bankruptcy amid the financial crisis and its dispute with Baltisky Bank.

• 2008

  Peak-period development activity

  [1]Stroymontazhen.wikipedia.org

  The company reported 286,000 square metres of residential sales and a portfolio of approximately 1.5 million square metres.

• 2002

  Business division between founders

  [1]Stroymontazhen.wikipedia.org

  Kirilenko and Polonsky separated their business interests, with Kirilenko retaining control of Stroymontazh.

• 2000

  Moscow expansion

  [1]Stroymontazhen.wikipedia.org

  The company opened a Moscow subsidiary led by Sergei Polonsky.

• 1996

  First full-cycle development project

  [1]Stroymontazhen.wikipedia.org

  Stroymontazh began developing an apartment building in the suburbs of Saint Petersburg.

• 1994

  Company established

  [1]Stroymontazhen.wikipedia.org

  Artur Kirilenko and Sergei Polonsky founded Stroymontazh in Russia.

A vertically integrated regional construction and property-development company focused primarily on residential development in Saint Petersburg, with contracting, architectural, building-materials, property-sales, and limited international-development capabilities.

• Residential real estate · 1996

  Residential apartment buildings

  Stroymontazh's core activity was the development and construction of apartment buildings, particularly in Saint Petersburg and its surrounding areas. The company progressed from contracting and renovation into full-cycle development, managing project delivery and residential sales. Its portfolio included individual apartment buildings as well as larger residential districts and complexes.

• Commercial real estate

  Commercial property

  In addition to housing, Stroymontazh developed commercial real estate. Its notable projects included the Petrovsky Fort business centre. Across its history, the company was credited with constructing approximately 60,000 square metres of commercial property.

• International residential development

  Hermitage SAS development

  Through its subsidiary Hermitage SAS, Stroymontazh pursued a residential development of approximately 110,000 square metres on the outskirts of Paris. The project represented the company's principal internationally described development activity.

• 2009

  File for bankruptcy protectionStrategy

  Background

  The construction-sector liquidity crisis and a dispute with creditor Baltisky Bank placed pressure on Stroymontazh's financing and assets.

  Action taken

  The company filed for bankruptcy, describing the proceeding as a necessary measure to protect homebuyers and private-equity investors.

  Aftermath

  The court approved the application in 2010 and placed Stroymontazh under bankruptcy administration.

  Source

• 2002

  Separate the founders' business interestsStrategy

  Background

  The Moscow and Saint Petersburg operations had developed along different paths after the opening of the Moscow subsidiary.

  Action taken

  Artur Kirilenko and Sergei Polonsky divided their business interests; Polonsky later formed Mirax Group from the Moscow operation, while Kirilenko retained Stroymontazh.

  Aftermath

  Kirilenko became Stroymontazh's principal owner and chief executive, and the company continued expanding in Saint Petersburg.

  Source

1. 1Stroymontazhen.wikipedia.org