Russian listed property developer Etalon has signed an agreement with ExpoForum to become the general building contractor for the first stage of a major congress and exhibition centre in St Petersburg.

The new multi-use complex will be located in St Petersburg's Shushary town, and will consist of a congress centre, exhibition halls, two hotels, two business centres, an administrative office, warehouse and parking.

The estimated value of the contract for Phase I is RUB 14 bn (EUR 350 mln). Construction work is due to commence on 1 August 2011 and to complete by 31 October 2013.

'This project in itself is a further demonstration of the continued recovery in construction volumes in our key regions,' said Etalon chairman Viacheslav Zarenkov.

Etalon, which raised $575 mln in an initial public offering on the London stock exchange in April, focuses on large-scale residential complexes in Moscow and St. Petersburg. The company's portfolio consists of 28 projects covering 3.13 million m2 of lettable space.