1994. Getting Started in St. Petersburg
Sergei Polonsky and Artur Kirilenko, classmates and graduates of the St. Petersburg State Architecture and Construction University, create a contracting company that initially specializes in finishing work. They name the company Stroymontazh.
1995-1997. Development of a New Business Model
With the St. Petersburg construction market in a period of global change, the new conditions demanded fundamentally new approaches. State orders were a thing of the past, and private investors were still in no hurry to fill the gap. To settle accounts with the young contracting company, construction companies began to sign over the ownership of apartments in unfinished buildings. In 1995, Stroymontazh entered the fractional construction market.
The company saw new opportunities opening up in, among other things, project financing. Jointly with the Stroitelny Trest (Construction Trust) Company, Stroymontazh participated fractionally in two projects and took possession of the first apartments.
In 1996, the partnership with Stroitelny Trest reached a new level. The friendly ties were reinforced, Stroymontazh took possession of additional sites, work flow became more stable, and production capacity grew.
During this stage of development, a firm foundation was laid for the company’s future work. A team was formed that became the basis for the future corporation.
In 1997, Stroymontazh received its first general contract—an unfinished building in Novodevyatkino.
1998. Climbing to the Next Level
By 1998, Stroymontazh had achieved noted success as a sub-contractor at a whole series of high-profile sites in St. Petersburg. It was time to begin building a reputation as a capable, reliable and innovative general contractor.
The company had gained experience not only in building new facilities, but also in restoring historical monuments in St. Petersburg. On its resume were the Ice Hall of the Sheremetievo Palace, the National Public Library, and the Hospital of Infectious Diseases on Kukharevskaya Ulitsa.
In addition, Stroymontazh had completed successful finishing projects in a number of residential buildings in and around St. Petersburg, including: prospekt Morisa Tereza, 96; prospekt Engelsa, 126; prospekt Prosveshcheniya, 93; ulitsa Khlopina, 7; Pushkinskaya ul., 10; Oktybrskaya naberezhnaya, 80; ulitsa Staroderevenskaya, 18; and the city of Pushkin, ulitsa Malinovskogo, 17.
On September 28, 1998, the building in Novodevyatkino was handed over. Two days later, another building where Stroymantazh was the general contractor, on ulitsa Afonskaya, was delivered. On time, on budget, as promised, and exceeding expectations.
The company had attained a fundamentally new level of professional growth.
1999. Achieving the Role of Market Leader
In 1999 Stroymontazh continued to increase its construction volumes, becoming general contractor for four major projects in St. Petersburg. The project at Pr. Kultury, bldg. 25, was delivered on May 22; pl. Lva Matsievich (Lev Matsievich Square), bldg. 4, was handed over on September 21; and ulitsa Kommuny, bldg. 30, was a New Year’s gift—it was handed over on December 30.
With the increase in construction volumes, the need arose to create a financial and analytical department. An information system to optimize production planning and financial accounting was implemented within the company.
As the financer of all its projects, Stroymontazh gained a reputation as a financially stable participant in the St. Petersburg construction market. The city’s banks found the company’s accounting to be clear, transparent and attractive, and this helped to make Stroymontazh a desirable financial partner in mutually-profitable relations with them.
As the company continued to grow, a legal department was created and the company began to work actively with interest-holders.
In September of 1999, Stroymontazh founded the St. Petersburg Association of Builders, with a number of other leading construction organizations.
2000. Becoming a Force in the Moscow Market
This was a key year in the history of Stroymontazh. The company expanded beyond the familiar confines of St. Petersburg and grew to become a corporation.
The corporation added new divisions: “Stroymontazh-Svaya” and “Stroymontazh-Avto.” An architectural and construction bureau united under the company’s wing the region’s best designers and architects, talent that was hard to find in the early post-Soviet period.
New Stroymontazh building sites started popping up on the construction map of St. Petersburg: first the Yuzhnye Vorota (Southern Gate) Complex, and also a facility on ulitsa Tukhachevskogo.
A number of crucial decisions were made in 2000. The corporation entered the commercial real estate market, as Stroymontazh Corporation acted as the initiator and general designer of the Petrovsky Fort Business Center.
This decision was dictated by the need to reduce financial risks. The company needed to restructure its cash flow to insulate ongoing projects from unstable conditions in the St. Petersburg residential construction market.
One of the most important events of the year was the entry of Stroymontazh into the Moscow construction market. The affiliate in the capital was opened in early 2000, and already in October the first stone was laid in the foundation of the monolithic “Korona (Crown)” residential complex, in which Moscow Mayor Yuri Luzhkov took part. Two months later, a contract was signed for the construction of the second round of the Zolotye Klyuchi (Gold Keys) Residential Complex.
“We didn’t come to Moscow for prestige and profits,” says corporation president Sergei Polonsky. “It’s just that we had outgrown the St. Petersburg market, and the capital, Moscow, offers many more opportunities where we can bring our ideas to life in creating comfortable modern housing. We are in Moscow for the long haul—Forever.”
Stroymontazh Corporation is the only St. Petersburg construction firm to have entered the Moscow market, and it has established a solid presence in the country’s capital city.
2001. New Services, Capabilities and Achievements
With groundbreaking on the “Fifth Element” and “Petrovsky Fort” complexes in St. Petersburg, Stroymontazh became a major force in St. Petersburg’s commercial construction industry as well as its residential development market.
The work on the “Petrovsky Fort” project was new territory for Stroymontazh. Until then, Stroymontazh had worked exclusively on the residential real estate market.
The “Petrovsky Fort” project was an ultra-modern 538,000 square foot, 14-story, B+ class business center equipped with the most advanced communications and utilities. The project also included the restoration of an unfinished facility—the second round of the St. Petersburg Hotel.
Despite the complexity of the task, the Presidents of Stroymontazh, Sergei Polonsky and Artur Kirilenko, gave their word to governor Vladimir Yakovlev that they would hand over the facility in time for the celebration of the 300-year anniversary of the founding of St. Petersburg.
In 2001, the company expanded the range of services it offers its clients. Free tours through Stroymontazh construction facilities were organized for apartment buyers. Stroymontazh also began a more focused approach to marketing itself and its properties. Automobiles with company advertisements began to cruise around St. Petersburg, and the company’s own news agency, video studio and new corporate website were created.
2002. Building on Success
In 2002, Stroymontazh built 2,150,000 square feet of housing in Moscow and 1,250,000 square feet in St. Petersburg.
In addition to its contracting and construction activities, the company had grown to be a large holding company. Stroymontazh was able to offer its clients the opportunity to pay either in one lump sum or in installments. In St. Petersburg, Stroymontazh began to sell apartments not only in its own facilities, but also in those of its partners.
The Moscow affiliate began to build the Europe-Building Business Center, the Zolotye Klyuchi 2 (Gold Keys 2), and began the design stage of Federation Tower, the tallest building in Europe.
Company President Sergei Polonsky received a number of honors and awards. He was elected President of the International Youth Chamber; awarded the “Honorific Badge of Peter the Great”; awarded the Order “For Personal Merit and Achievements Promoting the Development of Russia”; won the Moscow City “Best Business Owner of the Decade” contest in the category of “Construction Activities”; and was chosen as the winner of the “Construction Olympus 2002” professional prize.
In 2002, the corporation added a new division that was later named “Mirax-Service.” Its main task was to operate the buildings built by the company.
In 2002, Stroymontazh was divided into two companies: one in Moscow, and the other in St. Petersburg. The companies remain partner organizations, retaining friendly relations.
2003. Sustainable growth
On March 18, 2003, the last cube of concrete of the company’s Europe-Building Business Center was poured. The Europe-Building Office Center became the first commercial facility built by the corporation in Moscow.
On May 22, 2003, as promised, Petrovsky Fort was officially handed over during opening ceremonies on the eve of the 300th Anniversary of the Founding of St. Petersburg. Soon afterward, construction work was completed in the Fifth Element Residential Complex.
The Design Department of the Moscow corporation began to design two new large facilities: “Mirax Park” and Pollars Business Center.
2004. A New Brand of Development Corporation: The MIRAX GROUP
In August 2004 as a result of rebranding, the corporation was renamed MIRAX GROUP. To a large extent this decision was dictated by the need to diversify the business. The corporation also added two organizations whose work are not directly associated with construction—MiraxPharma and MiraxSoft.
In October, the first cube of cement was poured on Mirax Park, and the first pile on the corporation’s most ambitious and promising facility, the Federation Complex, was driven in.
2005. Financial Transparency is the Way to an Investor’s Heart
MIRAX GROUP is Russia’s first construction company to release financial reporting to the US GAAP international standard. In 2005 the Expert RA agency gave the company a B++ credit rating.
In August, the MIRAX GROUP LLC launched its debut bond issue and entered the closed real estate mutual fund market. The corporation acted as one of the initiators in the creation of the Russian Association of Builders.
The Federation Complex, the tallest building in Europe, is being built on the site of the “Moscow City”
International Business Center with the participation of world leaders in high-rise construction at a speed of three stories per month.
The corporation added a Department of Regional Development, which is responsible for implementing the experience and quality of MIRAX GROUP in Russia’s regions outside St. Petersburg and Moscow.
2006. New Projects, New Achievements.
In February of 2006, the corporation issued credit-notes (CLN) under the auspices of three major international banking institutions. Bank Zenith was the organizer; Alfa Bank was the co-organizer; and Dresdner Bank was the issuing bank.
In February, MIRAX GROUP completed pouring of the mat slab for Tower "A" of the Federation Complex. At a volume of 18,200 cubic yards of concrete, the procedure has been recognized by the Guinness Book of World Records as the fastest pouring of a mat slab of such large volume in history.
In 2006 MIRAX GROUP broke ground on several new major projects in Moscow. Among them are reconstruction of the Fili-Davydkovo District; creation of the “Health Center” complex; and construction of business centers “Admiral” and “Poklonnaya-11.”