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Chinese and Turks will build a hotel in Yakutsk

  • Published in InFocus
New Hotel Investors

Representatives of China Overseas Holding Group Smarter City Fund Co. Ltd came to Yakutsk

The goal is to explore the possibility of investing in the construction of a large hotel. The total amount of investments is 1 billion rubles. The developer of the project will be the Turkish company EKSI Group.

Mayor of Yakutsk Aisen Nikolaev said that the city, the Agency for Investment Development of Yakutia, an investor and developer signed a memorandum of intent. "China Overseas Holding Group Smarter City Fund Co. Ltd and EKSI Group are ready to consider the project and the opportunity to participate in its implementation. Along with them, the interest in the project was expressed by South Korean and Turkish investors," Nikolaev said. Negotiations with Chinese investors are conducted by the Ministry of Investment Development and Entrepreneurship of the Republic. The project will be funded exclusively with attracted investments; state co-financing is not envisaged.

The hotel will be located in the heart of the city. "If the project is implemented, readiness to operate a hotel is expressed by Hilton World Wide and Accor hotels, providing franchises for the organization of the hotel business," says Nikolaev.

This is not the first attempt by the authorities of Yakutia to attract Chinese investments to implement major projects. Since 2015, the republic has been cooperating with the state corporation of SynoHydro Corporation Limited for the construction of a bridge across the Lena River (the amount of required funds is 55-64 billion rubles). Chinese investors are ready to implement the project if there is a concession agreement with the Russian government. This will be possible when the project is included in the federal program "Development of the Transport System of Russia up to 2020." Also in 2015, the Chinese investment company Zhuoda and the Yakutsk administration signed an agreement worth 40 billion rubles on the complex construction of three blocks in Yakutsk. It was supposed to demolish old houses and build more than 300 residential buildings. In April 2016, the pile-sinking for the future multi-apartment building took place. Now the construction is not conducted.