The Auction House of the Russian Federation is preparing to sell 100% of shares in Kirovsky Domostroitelny Kombinat. The auction date has not yet been determined.

The primary type of activity of KDK is the manufacture of reinforced concrete and vibro-pressed articles.
The products manufactured by the combine have a wide range of uses in civil construction, energy, the oil industry and railway construction.
The production complex is equipped with modern hi-tech important equipment, has a developed infrastructure and the possibility of increase production capacity by 30%.
According to specialists’ estimates, the payback period of the company is 4.6 years, and the discounted payback period is 5.9 year. For manufacturing enterprises of the construction industry, the payback period of investments varies on average from 4 to 6 years.

Starting price of package – 540 million rubles

Andrei Stepanenko, General director of the Auction House of the Russian Federation:
“We expect that the object may interest Moscow building companies wishing to enter the Petersburg market. It may also major local builders in need of a production base, and perhaps foreign investors planning to build in Petersburg. As part of a major full-service company, the profitability of the complex will be significantly higher, and the payback period may be little more than 4.5 years.
The products manufactured by KDK are used for construction of economy class residential buildings – the most in-demand segment on the housing market. In a period of crisis changes, the demand for affordable apartments is constantly increasing. Furthermore, thanks to the modern equipment, the combine manufactures products used for building comfort-class houses and commercial real-estate. Staircases, columns and beams are needed in practically all segments of construction.
At present we are studying the potential interest in the asset, and plan to close the deal in the second quarter of 2012”.