The Moscow shopping and entertainment center “Riviera” will be sold through the auction procedure during the bankruptcy procedure at a cost of at least 10 billion RUB. This sale and purchase may well be considered the largest since the pandemic, even taking into account the fact that about 2 years ago, the deal for this mall could be estimated at 20 billion.
A banking institution with a non-core type of assets “Trust” has plans to participate in the bidding procedure for the acquisition of the SEC “Riviera” in the capital, according to RBC. The entire center is located on Avtozavodskaya street, where it will be implemented according to plans in August during the bankruptcy of the limited liability company “Riviera”, which is the owner of the center. This is reported by the bankruptcy trustee of the firm.
Riviera is one of the 15 largest complexes in Moscow, in addition, it is the first shopping center in terms of size on the 3rd transport ring. Its area reaches about 274,000 square meters, 100 of which are to be leased. If we evaluate the full range of rights, then rent, equipment, furniture sets, etc. will cost about RUB 9.965 billion.
Returning to the autumn of 18, we note that the shopping center was previously acquired from a shareholder and president of PIK – Gordeev, the buyer was KLS Eurasia Venture Fund. The latter was headed by Vladimir Kiryusha, and the cost of the complex was in the range of 15-20 billion RUB. The purchase was the largest in 2018 among all available on the real estate market. However, together with the shopping and entertainment center, there were also debentures, so in 1919 the bankruptcy procedure began.
The bidding procedure will be carried out using the “bullish” scheme. If you start selling at an initial cost, it will still be the largest investment sale and purchase during the pandemic. If we study the large transactions that were closed in 2020, we note the sale of Peking hotels from the VTB group of banking institutions, the implementation in the past of the premises of the Ministry of Industry and Trade located on the territory of Kitaygorodsky passage, the sale of Tsvetnoy, the buyer in the transaction where Bonum Capital acted. as well as the purchase of the Sever-4 Logopark by PLT. The transaction amounts were estimated at less than RUB 5 billion. Last summer, Sberbank acquired PNK Veshki Park at a price of RUB 9 billion.
The shopping center, by the way, is incorporated in Trust, as the bankrupt company owes the bank about RUB 43 billion. Note that slightly less than half of this debt is secured by property pledges. After the sale is completed, the collateral will be removed. This was announced by the arbitration manager of the firm Semyonov. As the sale is closed, the bank will be able to receive 97 percent of the amount.
In the event that the shopping center becomes an object on the balance sheet of “Trust”, the company will begin to establish the operation of the complex. Representatives of the Trust are talking about this. Prior to that, the head of the preliminary board of Sokolo Bank said that Trust wants to take the collateral in order to reload the shopping center, increase revenues and only then sell it to third parties.