Billionaire Rybolovlev to sell the last major asset in Russia at a discount

The owner Monaco Football Club and former shareholder of Uralkali, billionaire Dmitry Rybolovlev reduced the price of the business center on Vozdvizhenka by almost half: he's willing to sell his last major asset in Russia for $200 million.
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Last in Russia

Dmitry Rybolovlev structures again trying to sell a multifunctional center "Vozdvizhenka Center", the building of the former shop "Voentorg" on the street Vozdvizhenka, 10, in the heart of Moscow.

The center, which is the last major asset of the entrepreneur in Russia, has put up for sale: this is, for example, according to "Vedomosti" newspaper in July of 2014. The buyer has not been found, so Rybolovlev seriously reduced the price, told RBC representatives of three international consulting companies, familiar with the previous and the current Proposal: if in 2013-2014 the building was estimated by the seller at $ 500 million, today - about $ 200 million, they said.

A source familiar with the seller realtors, argues that "Vozdvizhenka Center" until the summer of last year was estimated at about "$ 350 million plus ', and is now worth" $ 200 million plus', that is, the price actually fell, but not as much.

"Rybolovlev plans to sell the asset as quickly as possible - preferably before the New Year - adds one of the interlocutors RBC. - The definitiveSingle price is not yet determined: depending on the interest of the applicants, it can be reduced. "

Rybolovlev spokesman declined to comment.

The historic Art Nouveau building, which occupies "Vozdvizhenka Center" was built in 1913. After exactly 90 years of the then Mayor of Moscow Yuri Luzhkov signed a decree on the reconstruction of the building, which is actually meant its demolition. The investor of the project was a group AST Telman Ismailov, it has invested in the project $ 140 million in 2009, Ismailov sold the building company "Nafta Moscow" Suleiman Kerimov:. Deal then estimated at $ 300 million and in 2010, the year Kerimov, "Vedomosti" on the information. He handed "Voentorg" structures Rybolovlev, thus paying part of the shares of "BRIC".

RBC interlocutors in the real estate market called Dmitry Rybolovlev sole owner of the building. All Rybolovlev owns what, "is in family trusts," recalls the representative of a businessman.

The site "Vozdvizhenka Center" stated the owner of "Trade House TSVUM". According to SPARK September 30, 2015th, 89.58% of this belongs to a registered Fayard Limited Cyprus.

Total area "Vozdvizhenka Center" is about 70 thousand sq. M. m, of which lease surrenders 27 thousand sq. m. m office area and 8 thousand sq. m. m trade. Anchor tenant of the office part of the complex - the company Samsung, trade - shops "Detsky Mir" and "Bahetle".

Money for divorce

Status Rybolovlev Forbes magazine estimates at $ 8.5 billion: it occupies the 14th place in the ranking of the richest Russian businessmen. Once in 2008, he began his divorce proceedings with his wife Elena Rybolovlev sold substantially all of its assets. From the sale of 63.5% of "BRIC" and 20% "Silvinit" businessman could fetch about $ 7 billion, assessed "Vedomosti".

In the spring of 2014 the Geneva Court decided that Rybolovlev has to pay the spouse of € 3,3 billion, and also convey to her property in Geneva, jewelry and works of art for $ 560 million. But in June 2015 of the billionaire's lawyers said that the court decision reviewed and ordered to pay ex-wife about $ 603 million plus property in Geneva.

Tuesday, Oct. 20,former wife issued a joint statement in which no details reported on the termination of all associated with the divorce legal processes.

Possible buyers

Given that the average rents in the complex is in the range of 25-30 thousand. Rub. for 1 sq. m per year, the price of the entire complex is about 10 billion rubles. (About $ 160 million at the exchange rate as of October 22), evaluates the executive director of the capital markets department of Colliers International Stanislav Bibik. "But in the current crisis, this object might be interested unless the emotional investor", - he said.

Price of $ 200 million - if the selling price is really such - quite correspond to the reality, adds CEO of CBRE in Russia, Vladimir Pinaev. "This building is located in the" zone of the Kremlin "and can rightly be considered a landmark, - said the expert. - In the long term of five to ten years, the potential buyer has the potential to significantly increase its capitalization by competent management and a gradual increase in rental rates. "

"Cto $ 200 million at first glance looks attractive for the asset, - says one of the potential candidates for the building. - Although, according to our information, with tenants signed long-term agreements denominated that does not increase the cost. "

Interviewees RBC advisors believe that potential buyers can be a group of BIN family Gutseriev - Shishkhanov, O1 Properties Boris Mints, Morgan Stanley or Millhouse Roman Abramovich. "Voentorg" may also be interested in the structure like the Russian Direct Investment Fund (RDIF) or "VTB Capital", says Bibik.

In the group BIN have confirmed that in October received a formal offer to buy the former "Voentorg", stating that it is not currently considering any options for acquisition of real estate. BIN representative declined to name the amount at which an asset is offered.

The press service of the O1 Group (owns O1 Properties) declined to comment. A source close to the O1 Properties, knows that such a proposal is now being studied.

At Morgan Stanley, Millhouse and "VTB Capital" refrained from comments. The Russian Direct Investment Fund did not respondand RBC request.

Reference market

In recent years, major transactions in the commercial real estate market are either non-monetary basis, or on deferred terms, draws attention partner Cushman & Wakefield Konstantin Lebedev. "The fact that the price has been reduced so much, means that the seller intends to get for an asset it was money - the expert believes. - In the case of closing the transaction, it will be a good benchmark for the entire market. "

It is obvious that the fall in the price dictated by the first state of the market, rather than the personal circumstances of the seller, adds Managing Partner Capital Global Partners Svetlana Kara. "The market is quite sluggish with investment activity point of view, - she says. - To close the deal, you need to give much in price. "

The company estimates JLL, in the first nine months of this year the volume of investments in the commercial real estate market exceeded $ 1.7 billion and $ 3 billion could achieve on the basis of "At the same time, we understand that the real total may be even lower than this conservative forecast", -. Notes head of researchJLL Tom Mundy.