Andrey Berezin, co-owner and CEO of Euroinvest holding, became the hero of construction and real estate media publications several times last August. At the same time, paradoxically, journalists and experts were much more generous with positive epithets when describing the results and Euroinvest's perspectives than the owner himself in his interviews. Read our article to find out why this is the case.
Euroinvest Development Is A Full-Service Development Company With Its Own Construction Division
The two main news items that attracted the attention of experts and journalists in recent months concerned the results of Euroinvest's activities in the development market. One of them was devoted to quantitative results: the profile at the Unified Developers'; Portal included the company in the top four most active developers in the Leningrad region. Given that the part is not the first year among the leaders in the total volume of housing construction in the country, this status makes Euroinvest a significant player not only on a regional scale.
But the qualitative aspect is also important: according to the results of his annual contest, the Union of Construction Associations and Organizations of the Leningrad region called Euroinvest the most client-oriented developer in the area.
Among the most critical features that brought the company a victory in this nomination was strict compliance with deadlines for housing delivery. But the main thing is an innovative concept of development, providing a significant expansion of opportunities for a comfortable life, leisure, and education of the residents. The company called its concept 3iD, and for the past few years has been building its apartment projects strictly according to it.
What does 3iD include? First of all, a package of technological solutions united by the concept of a "smart home". And at the same time, the obligatory placement of public spaces on the complex's territory will allow the residents to feel at home in a familiar environment, not only within the walls of their apartments.
The real estate portal of Saint-Petersburg SPbGuru examined in detail the concepts offered by Euroinvest, including the example of the multifamily complex iD Park Pobedy in the Moskovsky district of the city that is under construction now, and mentioned ample opportunities for "club life" available to the tenants of the complex. Receiving the keys, they automatically become members of the club (iD Residential Complex) and will be able to attend lectures, master classes, and excursions in an online and offline format. They will also have access to a program of privileges, including discounts and special offers on various services, including repairs, recreation, and purchase of health and beauty products from partners of Euroinvest.
Significant Impact Of Geopolitical Events On Business
It would seem that the company is doing very well, and it can continue its work in its primary development market, using the experience and reputation gained over the years. But the more noticeable contrast in this background was the statements of Andrey Berezin himself in the August interview to the edition of New Prospect. What did he say?
First of all, Andrey Berezin admitted that the real estate market in St. Petersburg and its region is generally slowing down. The reasons are clear. This year's abrupt geopolitical changes inevitably affected potential buyers' behavior. According to the head of Euroinvest, the slowdown was mainly caused by the mortgage rates, which jumped up for a while. Now they have fallen almost to last year's values, and developers, including Euroinvest itself, have introduced various compensatory programs which allow customers to take out mortgages even at 0.1% per annum. But it is impossible to win back the buyers' favor so quickly, and it takes time for the citizens to become more optimistic about the future, said Andrey Berezin.
At the same time, he stressed that he considers the conclusions about long-term stabilization of the housing market premature. "Right now, the main problem of developers is bringing new projects to the market. We brought a new project on Engels avenue in early February, and, of course, it will also be completed. The new projects are still in question, but overall we have a stable situation, and we will commission all the objects," said the CEO of Euroinvest LLC.
The apartment complex on Kurchatov St. in St. Petersburg was also mentioned cautiously. According to Andrey Berezin, the city authorities have already approved the construction. Still, as the apartments are not subject to the legislative norms on privileged mortgages, the company has decided not to rush to the beginning of the project, putting it off for a long time.
Indeed, all in all, the words of the head of one of the largest development companies in the North-West could instead become a warning for those who rush to return an optimistic view on the mass market of housing. But one may understand that all Euroinvest and even its separate development division are a vast team of people whose well-being directly depends on the reputation of the company and its management. And this means that in the current difficult times, the manager should be conscientious about every word he says.
Euroinvest: Companies And Projects From Various Sectors Of The Economy
It is worth paying particular attention to the fact that some lack of optimism in the block of Berezin's interview, devoted to construction, was more than compensated by the plans outlined in other areas.
The agricultural sector is one of them. After the mentioned interview, some publications appeared in mass media, the authors of which paid close attention to the words of the head of Euroinvest concerning the agro-cluster Krasnoye Znamya, belonging to the company. He said the following:
"In the future, we will be more actively engaged in agricultural projects. It is already clear that there will be trouble with food in the world. And even in this zone of risky agriculture, which includes our land in the Pskov region, it is necessary to develop agriculture", said Berezin, adding that in the cluster, we have already managed to put in order the fields in recent months, and invested in the creation of a dairy plant. We should add to this the previously published information that Euroinvest bought assets of the neighboring farming enterprise, including milking herds and cowsheds for its own dairy production.
Mr. Berezin reiterated that the company is still cautious even in this sector and is not developing investment processes to their total capacity. The reasons are the same: unstable economic situation and the need to treat the available resources with care.
But in 2017, Euroinvest took an important step that largely dispelled these fears by launching its own venture fund, Euro Venture, which focused on projects in the field of new materials and technologies.
Now, five years later, we can call the fund's work quite effective. Not only does its portfolio have several "shot" projects, but they were largely built based on the enterprises allegedly purchased for construction.
A vivid example is the prototype of a medical device for treating oncological diseases, primarily lung tumors, which was developed at the request of the Fund. The device's uniqueness lies in the possibility of using it directly during surgeries for full or partial removal of tumors. Thus, surgical measures are complemented by radiation therapy, which targets specific tissue areas, resulting in a marked increase in the effectiveness of a surgical intervention.
The prototype of the device was personally presented to and approved by Russian Health Minister Veronika Skvortsova. According to Andrey Berezin, preparations are being made to start mass production, including consultations with the designers and developing the necessary documentation.
Even one device would be enough to fix the efficiency of Euroinvest and its venture fund in innovations, but the company has other promising developments as well. For example, the line of medical equipment is complemented by another device based on X-rays, but this time focused on tumor diagnostics.
And among other ideas that have already found their embodiment in the "material", stands out as an electronic marketplace for trading building materials. The degree of readiness of the project is relatively high; according to Andrey Berezin, even the corresponding iPhone application is already ready. The market situation's instability prevents the marketplace's launch right now. In the current situation, it is unknown whether the suppliers of the market will be able to reconstruct the logistics chain, bring imported building materials and fulfill their obligations to the customers. Soon, we will decide what to do with the project; next, the head of Euroinvest explained in an interview.
Intellectual Potential As A Factor Of National Economic Development
All of the above are significant projects, and their prospects are quite interesting. But Berezin himself does not consider them to be the most important ones. In his opinion, which is also fully reflected in the company's policy, the most strategically important investment object is people, their education, competencies, and creative potential.
"I think the most important thing is education because right now, nothing but education will be quoted in the world. Have you read the book 'Technologies of the Fourth Industrial Revolution'? It was written by one of the founders of the Davos Forum, Klaus Schwab. What used to matter was a territory, markets, and raw materials. All this is gone and does not mean anything anymore. What matters is the human capital, the intellectual potential of a country. Only what you can invent yourself is valued in the world", the chairman of the board of Euroinvest emotionally summed up his position in a recent interview.
In light of these words, the active actions of the company to support some educational initiatives in recent years have become clear. These include assistance to the Leonhard Euler International Charitable Foundation for Mathematics, partnership in the Prometheus Star competition for young talents in St. Petersburg, and even the launch of its own scholarship named after pilot-cosmonaut Georgy Grechko for the best students and graduate students in the northern capital.
But even these amounts of investment in education were considered insufficient by the company's leaders. Soon, they plan to take the work of selecting and developing gifted children to a new level by establishing a governor's academy with a boarding school in St. Petersburg.
The choice of the format is understandable because Andrey Berezin himself used to study at school 239, one of the three educational institutions in the city oriented to working with the most promising students. And this proven approach, but at a qualitatively new level, will be reproduced in the academy being created.
As Berezin notes, by the present moment, they have already managed to solve the central question of staffing. There are preliminary agreements that the backbone of the teaching staff will be formed by people with work experience in the Physics and Mathematics Boarding School #45.
And besides the staff, there is an understanding of the premises of the future academy. The lot for the new complex is already allocated; it will be placed in Kaselevo near the Big Lake. The area of the site will be large enough to accommodate not only several academic buildings but also some additional rooms, including computer studios, greenhouses, and a sports club with a swimming pool. As well as living quarters separate for boys and girls.
As we can see, the secret of the difference between external and internal optimism is no longer a secret for Euroinvest. Given the difficulties of the current period, the company diversifies the basis for confidence in its future, transferring its activity to new but promising areas. And, judging by the results it has already achieved, it is doing a great job.
Company History
Investment company Euroinvest is a diversified holding company that includes companies and projects from different sectors of the economy.
One of the directions of Euroinvest work is legal and engineering support for developing land plots and territories in St. Petersburg, the Leningrad region, and other areas.
At the end of 2017, Euroinvest Group created its own construction division Euroinvest Development, which is engaged in the construction of housing and other objects, thus forming an entire cycle development business.
A relatively new direction for Euroinvest is the agro-industrial sector. For example, Agrocluster Krasnoye Znamya in the Pskov region specializes in producing grain and fodder for livestock.
In May 2017, the managers of Euroinvest Investment Company established the Euro Venture fund with an initial amount of €10 M. Priority areas for investment are innovative developments in the scientific and technical sphere, as well as projects in the creative industry.
Persona
Andrey Berezin was born in 1967 in Leningrad. In 1990 he graduated with honors from Leningrad Ustinov Mechanical Institute with a bachelor degree in Engineering. In 1990 he graduated from Leningrad Ustinov Mechanical Institute, majoring in mechanical control systems engineering. During his studies, he was Lenin's and Ustinov's scholar and had scientific publications. In 1990 he was enrolled in a post-graduate course at LMI and started a similar business.
In 1993 he took part in creating the North-West Fisheries Company. In 1995, together with Yuri Vasiliev, he made the investment company Euroinvest, and since then, he has been CEO of its board.
In 2017, Andrey Berezin was awarded a certificate of merit by the Russian Ministry of Industry and Trade for his significant contribution to the development of the Russian industry and many years of diligent work that he continues into 2023 and 2024.
