The Voentorg building, buy the Alliance of the Russian-Chinese investors

The Voentorg building, buy the Alliance of the Russian-Chinese investors


The building of Voentorg on Vozdvizhenka street in Moscow

Photo: Lori

Russian and Chinese investment company Fosun Avica businessman Guo Huancane agreed to buy famous building of Voentorg on Vozdvizhenka the structure of Dmitry Rybolovlev. The asset sold for three years, might cost 9-10 billion rubles.

The buyer from Shanghai

A Hong Kong company FPH Europe Holdings II Limited has received approval for the acquisition of JSC “Trading house “Central military Department store” (TD “TSVUM”), which owns the building of the Department store Voentorg on Vozdvizhenka street, 10. The corresponding decision contains in the database of the Federal Antimonopoly service and published on January 11.

FPH Europe Holdings II Limited is a joint venture of the Russian company Avica and Chinese Fosun, said RBC a source familiar with the transaction. This is also knows the Director of the Department of capital markets, Colliers International Sayan Tsyrenov. On the distribution of shares between the partners, the interlocutors of RBC is not known.

Get prompt comments in Fosun failed. The official representative of the Rybolovlev and employees of press services and Avica consulting company JLL, acting as a transaction broker, declined to comment.

Avica Property Investors manages funds created by the structures of Ruben Vardanyan and RD Group Gagik Adibekyan. These funds own are located near the Voentorg business center “Romanov Dvor” and shopping Mall “Vremena goda” on Kutuzovsky Prospekt and Dream House in Barvikha near Moscow.

Fosun International Limited was founded in Shanghai in 1992, Guo Guantanam is one of the largest investment companies in China. Its market capitalization on the Hong Kong stock exchange on 11 January 2017 $12,35 billion Company in 71,37% owned by Fosun International Holdings, main owners of which as of December 31, 2016 was Guo guangchang road (64,45%), Lean Blue Jung (24,44%) and van Qunbin (11,11%). The main shareholder of Fosun is called “Chinese Warren Buffett”. As told himself guangchang road, Buffett’s “he took a sample of the corporate strategy of his conglomerate to invest insurance reserves in diversified businesses”. According to the magazine Forbes, in 2016, the businessman has occupied 22-e a place in rating of the richest people in China (270-e in the world) with a fortune of $5.8 billion

Guo Guangchang Road

Photos: Sam Bagnall/AMA/Getty Images

Fosun invests in real estate, insurance, tourism, metallurgy, pharmaceuticals, media and other industries. In particular, among its assets a French resort chain Club Med shares in the circus company Cirque du Soleil and tourism Thomas Cook. However, until now the company does not invest in real estate in Russia.

The amount of the transaction could reach 9-10 billion rubles, said Tsyrenov. According to him, the final amount could affect the impending relocation of the company Samsung, which is in the Px 5.8 thousand sq. m. Previously, RBC wrote that the Department intends to leave another major tenant, “Children’s world”. Instead, the retailer planned to open a flagship store in the shopping gallery “Fashion season” on Okhotny Ryad. In a press-service of the “Children’s world” then confirmed the interest in the “Fashion season”, but said that the network is going to keep the shop in the Px.

Last asset

The commissary is located 500 m from the Kremlin, is one of the most famous Soviet shops. The art Nouveau building was built in 1913. In 2002 it was bought by the group ” AST ” Telman Ismailov. After a year, the then mayor of Moscow Yuri Luzhkov signed a decree on the reconstruction of the building, which actually meant its demolition. The area of the new building amounted to 70 thousand sq m, almost four times more than the old. AST has invested in the project $140 million In 2009, Ismailov have sold the building company “Nafta Moscow” Suleiman Kerimov. The deal was estimated at $300 million a year the military has got to Dmitry Rybolovlev as payment of part of the sale of its share in Uralkali, wrote “Vedomosti”.

Rybolovlev, who for several years lived in Monaco, began to sell off its assets since 2008, when he started his divorce proceedings with his wife Elena. From the sale of 63.5% of Uralkali and 20% of Silvinit businessman could fetch about $7 billion, estimated by “Vedomosti”. By the end of 2016, Forbes magazine estimated the state Rybolovlev $7.7 billion (12th place in the list of the richest people of Russia), which is $1.1 billion less than in 2014. The px is the last major asset of a billionaire in Russia. The building was put up for sale in early 2014.

As told RBC sources in consulting companies, the billionaire had planned to obtain for an asset $500 million, a Source familiar with the realtors of the seller, in October 2015, told RBC that the price was lower: by summer 2014, the building was estimated at about “$350 million-plus,” but then began to cost “more than $200 million.” The rating was affected by the collapse of the ruble.

The military claimed almost all active investors in real estate. So, among the contenders was O1 Properties Boris mints, UFG Asset Management and Ассеnt Alexander Samonov. In December 2015, it became known that the Military became interested in the group BIN (today Safmar) family Gutseriev and Mikhail Shishkhanov. According to interlocutors RBC, she was ready to pay for the building of 12-13 billion rubles ($171-185 million at the exchange rate at the time). However, in may 2016, “Vedomosti” wrotethat the BIN group was forced to withdraw from the transaction because it failed to attract a loan for the purchase of the object.

If the transaction with Fosun will be closed, it will be one of the largest in the commercial real estate market with the participation of foreign companies. According to CBRE, in 2016, offices, shopping centers, warehouses and hotels in Russia has invested $4.5 billion While the share of foreigners accounted for less than 5%, and about 40% invested company with state participation. For comparison, in 2015 the share of foreigners had more than 15% of investment in commercial real estate, and in 2014 — more than 37%. However, in 2017 CBRE analysts expect the opposite trend: the share of foreign companies should start to grow, and the total amount of investments into the market will reach $5 billion.