ISTANBUL - It would seem even Russia's oligarchs have not been spared the effects of the global economic crisis.
Sergei Polonsky, the owner of Mirax Group, the largest real estate developer in Moscow, is just one of several Russian billionaires who have decided to downsize. In a move similar to many other Russain billionaires who are selling their villas, yachts and jets, Polonsky has decided to put the Sungate Port Royal hotel up for sale to save his construction company in Russia.
Polonsky had purchased the five-star hotel in the Kermer district of Antalya in southern Turkey for $340 million prior to the crisis. He may actually sell the hotel for half that, sources said, adding that the money from the sale would be used to complete unfinished construction projects.
Meanwhile, construction of a shopping mall in the southeastern city of Diyarbakır has halted due to the global crunch. The shopping mall was estimated to cost 120 million euros, but construction stalled when Multi Turkmall, a joint venture of the Netherlands and Turkey, has failed to obtain bank credit. Cancellation of the project is out of the question, said officials of Multi Turkmall, adding that they expect to complete the Forum Diyarbakır mall by the end of the year.