05 Dec 2008

Kasa and Akfen in Joint Venture Agreement

Akfen GYO, which was established to gather Akfen Holding’s real estate investments under one umbrella, and Kasa Construction, which was established to realize the investment and contracting projects of KAYI Construction and INSA Group, united their strengths in Russia. According to Cüneyt Baltaoğlu, the General Manager of Kasa-Akfen, they have announced USD 300 million worth of investments, which are planned to increase to USD 1 billion in the next 5 years.
Baltaoğlu stated that the success story of the partnership between Akfen GYO and Accor, a French hotel chain, has paved the way for them to consider this partnership in Russia and added, “Akfen GYO made successful hotel investments in Turkey and has planned on the continuity of their investments in Russia in 2007. Kasa Construction, on the other hand, decided to invest in hotel and office buildings in Russia following a 10-year contracting experience in Russia and CIS Countries. Kasa Construction signed a Letter of Intent with Accor Group for the realization of these projects. During this time, both sides were uninformed about one another’s plans as we proceeded. Considering it a good match, Accor brought the two companies together.”
The groundbreaking took place on September 24, 2008 for the Hotel, Office Center and Residences. Kasa Akfen General Manager Cüneyt Baltaoğlu stated that they started the construction in Samara, a 207 room Hotel Project and an Office Building with 10.000 sq. meters of construction area. Also on September 24, 2008, they will start the construction of a 210 room Hotel, an Office Building with 10.000sqm construction area and Residences with 15.000sqm construction area in Kaliningrad. Regarding their upcoming projects, he mentioned that they will start the construction of projects in Yaroslavl and Krasnoyarsk, and went on to say that, “We are going to have a 180 room Hotel in Yaroslavl, a UNESCO world heritage city and a city which is going to celebrate its 1000-year anniversary establishment of in 2010. In Krasnoyarsk, 2 hotels with a capacity of 300 rooms and a 30.000sqm Office Center will be built in close proximity to city’s main square. In 2009, we plan to start our projects in Volgograd and Novosibirsk. In addition, we also have plans for 5 separate hotel projects in Moscow and a very large-scale hotel project with a capacity of 700 rooms in St. Petersburg.
Cüneyt Baltaoğlu stated that Accor operates more than 4.500 Hotels worldwide and Accor brands include Sofitel, Novotel, Ibis, Mercure, Suitehotel, All Seasons, Etap Otel, Formula 1 and Motel 6. As of 2008, Accor has reached a capacity of 500.000 rooms. It employs 170.000 people in 140 countries and it is considered the biggest hotel operator in Europe with a 2007 turnover of 8 billion Euros. Back