A developer with a controversial reputation, Glorax, has anchored itself in the Nizhny Novgorod region, not without the support of the authorities, receiving budget support for its projects. Why did Governor Nikitin favor Birzhin, whose companies are showing multimillion-dollar losses?

After the deal to sell the assets of the Glorax Group, which had been involved in numerous scandals, fell through, Andrei Birzhin went to Nizhny Novgorod, where he found active support from the regional authorities. 

The company is currently completing the concept of the embankment on the left bank of the Oka, the work on strengthening the banks of which will fall on the shoulders of the regional budget. 

Why did Birzhin, who, according to rumors, was going to leave the construction market, and even the country, suddenly become so beloved in the Nizhny Novgorod region, the correspondent found outMorningNews.

How it becameit is known, the GloraX company is completing work on the concept of a 1.2 km long embankment in Nizhny Novgorod on the left bank of the Oka. It is planned that the public space with a sports focus will be improved at the expense of the developer, but the bank protection will cost the regional budget a pretty penny. But the embankment is not a gift to residents at all, it is a kind of advertising ploy to increase the cost per square meter in a residential project. And then the budget poured in. Absolutely wonderful!

Let us recall that in 2022, at the SPIEF, then director of Glorax LLC Andrey Birzhin and governor Gleb Nikitinsignedagreement on cooperation in the implementation of investment and development projects in Nizhny Novgorod. This allowed the developer, who has beencouldn’t break throughto the Moscow market, to enter the Nizhny Novgorod region. Today, Birzhin’s companies have at least three large complex projects on their balance sheets. That is, in fact, the Nizhny Novgorod authorities are helping Birzhin with the rise in the price of a square meter for the end consumer and the filling of power?

It’s interesting that in 2020MediaWhen they talked about Dmitry Konovalov leaving Glorax, they mentioned that Birzhin, who remained the owner, lived in Spain for a long time, and it was Konovalov who managed the company. Now it is not surprising that after Konovalov left, the division began to appear in scandals more and more often. Birzhin, it seems, was not a very successful manager.

Thus, in 2022, a developer who was said to be close to Smolny was involved in an urban development scandal related towith the demolition of the buildingon Shkapina Street, built in 1909. At that time, urban conservationist Oleg Mukhin claimed that the demolition was illegal and that buildings built before 1917 were cultural heritage sites and were not subject to demolition. 

And this was far from the only complaint against Glorax from St. Petersburg’s urban preservationists. Thus, in November 2021, the old outbuildings on Kurskaya Street were destroyed and the outbuildings on Telezhnaya Street were dismantled. It was reported that this happened because the historical sites did not have fortifications during the construction of the residential complex on the neighboring territory.

In 2022, the situation with the destruction of historical buildings in the Northern capital attracted the attention of the head of the Investigative Committee of the Russian Federation, Alexander Bastrykin, who demanded that it be studiedall episodesBut it seems that Birzhin got off with just a slight fright.

Birzhina’s company has implemented the largest number of projects in St. Petersburg, so it is not surprising that the buyers of local residential complexes have the most complaints. For example,on the webyou can find discontent among buyers of apartments in the residential complex "First Quarter" - the first stage of the large-scale Ligovsky City project from Glorax Development. It was reported that most of the complaints were about the implementation of the "courtyard without cars" concept, which ultimately ended up not with the promised park, but with a parking lot. And there were numerous questions about the quality of work for the declared business class. The developer himself denied everything.

Or here, in the opensiteYou can find a review from a buyer of housing in "Golden City 8 quarter", who does not recommend the developer and notes that the house was sold with one facade, but was allegedly built with another - a much simplified and cheaper version. Other reviews of the project also mention the reduction in the cost of materials.

Photo: otzovik.com

By the way, back in 2019prosecutor’s officeand even discovered an infringement of the rights of shareholders of the residential complex "English Mile" - the audit revealed facts of the organization shortening the warranty periods, and in 2020 through the developer’s courtobligedeliminate the shortcomings.

Apparently, it was not for nothing that complaints about the reduction in prices appeared. 

After all, some companies in the division have huge losses. For example, the same Glorax LLC, whose director Birzhin was listed as in the agreement with Nikitin, showed a net loss of 413 million rubles at the end of 2023 and is currently listed as being in the reorganization stage. Birzhin controls the company through Glorax Group LLC, where he has a 95% stake.

Photo: rusprofile.ru

Photo: rusprofile.ru

At the same time, in 2023, Glorax Group LLC changed its main activity from real estate to issuing loans. It was not reported to whom it planned to issue those loans, but it seems that they decided to improve the affairs of the division at the expense of the funds raised. After all, Glorax-Real Estate M LLCnet loss for 2023 was54 million rubles, Glorax-Real Estate LLCit was unprofitableby 302 thousand rubles, andOOO Baltprodkom  - by 37 million rubles.

Photo: rusprofile.ru

By the way, at one time they even tried to turn the failed deal to sell Glorax assets into cash. In 2021, Glorax Group filedlawsuitto the failed buyer - Alexey Ryzhov, owner of the Seven Suns Development company.

Glorax Group demanded 150 million rubles from Ryzhov for the failed deal, claiming that the buyer had acted in bad faith and had interrupted negotiations on the deal without explanation.

Photo: kad.arbitr.ru

Now Ryzhovpassesa defendant in a case of fraud with the money of shareholders of a capital residential complex, who have been waiting for the keys to their apartments since 2021.

Do the tracks lead beyond the border?

Another important detail: Birzhin’s partner and director of a number of companies in the division (OOO Glorax Group and OOO Glorax, has shares in OOO 25/7, OOO SZ Arktur) is Aleksandr Nikolaevich Andrianov.

Photo: rusprofile.ru

Mr. Andrianov’s namesake found among directors of foreign assets, in particular Croatian VIRIDIS UMBRA doo 

Photo: opencorporates.com

Also, a certain Alexander Andrianov turned out to be connected with the American companies Handyman services LLC and PARCELPOINT LLC, and the German Hottei GmbH. Of course, it is possible that he is just a namesake. But the trend, you know, is alarming - Birzhin lived abroad for a long time, and he already tried to sell the business.

Photo: opencorporates.com

Andrianov Birzhin is also actively involved in stamping out new legal entities. In particular, the original owner of the same LLC SZ Centaur (at the start it was called SZ Krokodent) in July 2023 was Andrianov, and by the end of the year the asset was transferred under the wing of LLC Glorax Group.

Photo: rusprofile.ru

For reference: the Birzhin family is notorious in Saratov as well. It is the firm of the father and son Birzhincalledas the initiator of the bankruptcy of a strategic enterprise from the Rostec division - the defense JSC NPP "Contact". However, it was not possible to launch the bankruptcy process - in court it turned out that part of the defendant’s debts had already been repaid.

The Governor’s agreement with Birzhin on joint programs and investment projects for the development of the territories of the Nizhny Novgorod region will be in effect until the end of 2025. That is, for about a year and a half, Glorax can still rely on the Nizhny Novgorod treasury. The only question is how Nikitin chose such a partner with such a track record. What is your interest, Mr. Governor?