Listed property firm Sponda has announced it is partnering with several other Finnish groups to establish a new real estate investment company focusing on investments in the Moscow and St Petersburg markets.

The partners joining with Sponda to launch Russian Invest are construction firm SRV, pension fund Ilmarinen, mutual pension insurance group Etera and family-owned company Onvest.

Sponda said the partners are injecting a total of EUR 95.5 mln in the new unit, with Sponda, Ilmarinen and SRV taking a 27% share each and Etera a further 13%. Onvest is taking a 5% share. SRV will also assume responsibility for project development and marketing and will also act as the leading project contractor for projects approved by the investment company.

The capital will be drawn only after the investments have been identified, Sponda added. 'The aim is to finance Russian Invest development projects through project-specific bank loans.' The total investment amount may reach EUR 300 mln, it added.

'The business concept of Russian Invest supports Sponda's growth strategy in Russia. During the investment period we will have the opportunity to acquire new properties that meet international standards from the joint venture and thereby grow our Russian property portfolio,' said Kari Inkinen, CEO of Sponda. The investment company's strategy is to sell off the completed properties after a few years of ownership.

Sponda has been operating in Russia since 2006.