Moscow City Hall abandoned plans to seize 130 hectares that belonged to the Czech PPF Group

The Moscow City Hall, which tried to seize 130 hectares in New Moscow that previously belonged to the Czech PPF Group, decided to abandon its demands. The current owners of the site – the Invest AG structure, owned by the founders of Evraz Alexander Abramov and Alexander Frolov – promised the capital authorities to develop the territory, including building it up with residential real estate. From the sale of these areas, the developer will be able to earn a record 135 billion rubles. But experts warn that the implementation of such a project may be complicated due to the distance from the Moscow Ring Road.

As Kommersant discovered in the ruling of the Moscow Arbitration Court, the capital’s mayor’s office and the city property department (DGI) abandoned the claim against ISK Klokovo LLC for the seizure of 130 hectares belonging to the company in the village of Konyushkovo in New Moscow. The document was published in the file of arbitration cases. The trial was initiated last fall because these lands, as officials claimed, had not been used for their intended purpose for three years (see Kommersant of December 19, 2023).

The DGI explained to Kommersant that the decision to withdraw the claim was made after the owner of the territory approached with a proposal for further development of the plots. The parent company LLC ISK Klokovo – Invest AG, owned by Evraz founders Alexander Abramov and Alexander Frolov, did not respond to Kommersant’s request.

Initially, these lands belonged to the Czech PPF Group, which planned to build 1.2 million square meters. m of housing with an investment volume of 100 billion rubles. In 2022, after the start of the Russian military special operation in Ukraine, the company began to sell off its assets. PPF sold this land to the structures of the ICT group of Alexander Nesis, which then resold the asset to Invest AG.

This is not the first time that the site in New Moscow has become the subject of controversy. At the end of 2021, the St. Petersburg developer “Yard” Andrei Koshkin wanted to buy 130 hectares, but the deal fell through, and the counterparty demanded to recover 400 million rubles from PPF Group, but the court partially satisfied the demand – for 40 million rubles. (see “Kommersant” dated August 1, 2022).

The developer of the project for developing the territory in the village of Konyushkovo will presumably be Ferro-Stroy Group of Companies, another company in the real estate market owned by Alexander Frolov and Alexander Abramov, says the founder of Best-Novostroy, Irina Dobrokhotova. On the company’s website, this project is listed as a residential development and has the status “in design.”

In Konyushkovo it was planned to build housing with a total area of ​​1.2 million square meters. m, but the previous owner wanted to increase the building density – perhaps the current owners of the site also have such plans, suggests Timur Ryvkin, director of the Nikoliers residential real estate and land development department. Ricci Partner | M&A Petr Vinogradov believes that a residential area with a total area of ​​1 million square meters can be built there. m. If it is implemented, investments in construction could amount to about 95-100 billion rubles, and proceeds from the sale – 130-135 billion rubles, he calculated.

The site is located quite far from the Moscow Ring Road, which is a limitation in terms of transport accessibility for potential demand during the implementation of such a large-scale project, warns Pyotr Vinogradov. Timur Ryvkin considers the site promising in terms of location between Kaluga and Kyiv highways. The construction of the Troitskaya metro line will significantly improve transport accessibility and increase the attractiveness of this location, agrees Irina Dobrokhotova.

She does not rule out that the territory could be developed with the involvement of partners. This is a common practice in the housing construction market. For example, Pavel Tyo’s Capital Group, in partnership with Alias ​​Group, which includes regional developer Neometria, plan together to build part of a portfolio of 1.5 million square meters. m in Moscow. Invest AG also has similar experience, which invested in housing construction projects “RKS-Development” of the family of financier Igor Sagiryan (see “Kommersant” dated November 7, 2022).

Daria Andrianova