Developers huddle around the Kremlin – Kommersant

As Kommersant found out, the Chinese Vanke Group, which received the rights to restore the Imperial Orphanage and the complex of former buildings of the Academy of Missile Forces near the Kremlin, began looking for co-investors due to an increase in the project estimate. Among the contenders are MR Group of Roman Timokhin and Viktor Labuzdko. However, experts warn that the demand for expensive real estate that collapsed during the crisis will hardly allow developers to receive optimal profitability in the elite segment.

LLC Betskoy, which is engaged in the restoration of the Moscow Imperial Orphanage near Zaryadye Park near the Kremlin, is considering the possibility of attracting partners to the project, Kirill Ilyichev, the company’s executive director, told Kommersant. According to him, the possibility of financing is being discussed with potential applicants in exchange for a stake in Betskoy LLC or without being a member of the founders.

The top manager did not name the developers with whom negotiations are underway. A Kommersant source in the real estate market says that the project is being considered by all major developers of luxury real estate, including MR Group. Evgenia Starkova, Deputy General Director of MR Group, confirmed to Kommersant that the company is exploring options for cooperation with Betsky. MR Group’s interest in the project is logical, since the developer has experience in implementing elite projects in the center of Moscow, including the restoration of the Chizhevsky Compound on Nikolskaya Street, the creation of the Abrikosovo complex on Potapovsky Lane, and the Bvlgari Hotel on Bolshaya Nikitskaya Street.

The Capital Group, which also operates in the elite segment, denied participation in negotiations with Betsky. Sminex-Inteko and Vesper declined to comment, Kyiv Ploshchad Group of Companies did not respond to Kommersant’s request.

Betskoy acquired the right to restore the Imperial Orphanage in 2017 after the purchase for 10 billion rubles. at the auction of 33 former buildings of the Academy of Missile Forces. Six of these objects belong to the cultural heritage, including the orphanage. After the completion of the development project, the total area of ​​buildings will increase from the existing 113 thousand to 173.7 thousand square meters. m at the expense of apartments, commercial real estate and a hotel with 100 rooms.

In 2018, the Chinese Vanke Group bought out 75% of Betskoy LLC. Another 25% belong to the structures of Gennady Timchenko, Vedomosti reported, citing sources. However, the Volga Group, which manages the businessman’s assets, has always denied this.

In 2017, it was assumed that investments in the project would amount to 10 billion rubles. Now, according to Kirill Ilyichev, the total cost, including funds for the acquisition of the site and taxes, is about $1 billion, or over 80 billion rubles. at the current exchange rate of the Central Bank. Initially, Vanke was supposed to be responsible for financing this project. But due to currency fluctuations, attracting financing from abroad is risky, since the yield in yuan can be much lower than in rubles, explains the interlocutor of Kommersant, who is familiar with the progress of the project.

There are various options for the participation of third-party developers. For example, an apartment complex can be built by a residential developer, while commercial real estate can be built by specialized developers, partner Ricci | M&A Petr Vinogradov. In the current situation, large developers are unlikely to take on the hotel project: it will be difficult to achieve the optimal return for the investor, since the French Louis Vuitton, which initially agreed to manage the facility, refused to do so, notes Stanislav Ivashkevich, founder of Ivashkevich Hospitality.

Although the project has an excellent location, it will be difficult to implement it due to a decrease in demand for expensive real estate, says Kalinka founder Ekaterina Rumyantseva. According to NF Group estimates, in January-March 2023, no more than 140 apartments and suites were sold in elite new buildings in Moscow, which is half as much year on year.

Daria Andrianova