VEB.RF will receive more than 75% of the professional football club CSKA by converting its debt into shares. This was announced by Igor Shuvalov, chairman of the state corporation, told Interfax. Two interlocutors of Vedomosti in VEB.RF say that the state corporation does not claim to manage the club. The previous owner and president of PFC CSKA, Yevgeny Giner, will retain his post, and the state corporation will manage real estate, the source said.
The deal will bring the club to a new level of development, strengthen it financially, improve the quality of VEB.RF assets, the Minister of Economic Development of Russia and member of the Supervisory Board of VEB.RF Maxim Oreshkin listed on Facebook. According to him, CSKA will decrease its debt burden, the club will be able to count on new sponsorship contracts and an increase in cash flow from leasing commercial real estate. Oreshkin also confirmed: Giner will continue to manage the club. “Everything will be fine, the fans should not have any cause for concern,” Giner said through a representative. A representative of VEB declined to comment.
CSKA is a seven-time champion of the USSR and a six-time champion of Russia. This season, CSKA is in 4th place in the Russian championship. 100% of the PFC CSKA is owned by the British Bluecastle Enterprises Limited, the beneficiary of which is Giner, 76.44% of CSKA said in its report for 2018, noted there, pledged for the company's obligations.
Pass to the banks
VTB Bank acted as a creditor to the Dynamo All-Russian Sports Society, which, in addition to the football club of the same name, owned a development project and the rights to build a sports arena in Petrovsky Park. Investments in them were estimated at $ 1 billion. In the spring of 2009, Dynamo announced the transfer of 75% minus 1 share of Dynamo Management Company (manages the development project) and 74% of the football club to VTB as a debt. At the end of 2016, the state bank sold the club shares for a symbolic 1 rub. Dynamo community and pledged to provide sponsorship for three years.
One of the oldest Russian football clubs - “Torpedo” faced serious financial difficulties in 2014–2015. The club dropped out of the Premier League, its total debt exceeded 230 million rubles. In 2017, the club was bought by the owner of the Moscow Credit Bank Roman Avdeev. His company Ingrad promised to reconstruct the stadium. She is also building the RiverSky housing estate in Torpedo and surrounding areas.
VEB gave a loan of $ 240 million for the construction of the CSKA stadium in 2013. The construction cost was estimated at $ 350 million. The total area is 171,000 square meters. m, said in his presentation. 78,000 sqm m occupies a stadium for about 30,000 people, the rest - three office towers, including the 38-story Golden Tower in the form of the UEFA Cup, which CSKA won in 2005, a hotel and infrastructure.
The revenue of Bluecastle Enterprises, according to the report, is $ 100.4 million in 2018, operating profit is $ 12.5 million. The independent auditor in the report draws attention to the fact that total liabilities exceed assets by $ 8.8 million: there are serious doubts that the company able to continue activities in the future. It is also mentioned there that the company depends on the continued support of the beneficiary and his companies. Giner has difficulties with certain assets: for example, Rosgosstrakh, which is controlled by the Central Bank, requires Capital Life Life Insurance (formerly RGS-Life) from his company 150 billion rubles. for using the brand.
VEB.RF, CSKA and the Russian Direct Investment Fund (RDIF) are looking for a club of investors, say two employees of the state corporation. The RDIF is involved because there are large investors among its partners, including those interested in investing in sports, a person close to VEB explained.
Large international investors from RDIF partners with experience in investing in world-class sports assets are considered for CSKA, the representative of the fund confirmed. For example, the “daughter” of the RDIF partner, Qatar Investment Authority, controls the Paris Saint-Germain football club. A member of the royal family of Abu Dhabi (the emirate’s finance department is also a partner of the RDIF), Sheikh Mansur ibn Zayed Al Nahaya owns the Manchester City club.
CSKA is one of the greatest clubs in Russia and one of the most expensive brands in the country, Deloitte partner Sharif Galeev argues: it is interesting to investors, the question is who can afford it. He believes that rather it could be a structure associated with the state. Galeev is not sure that CSKA, with more efficient European clubs, will be able to attract investors from abroad.
VEB.RF does not plan to sell the club’s real estate, a person close to the state corporation says. Three consultants who worked with the club claim that VEB.RF has long been trying to sell offices.
The complex was commissioned in 2016, but there were almost no transactions there for the first two years, says Irina Artemova, Knight Frank office sales director. There were a lot of free offices on the market then, and VEB Arena was losing due to location, said Alan Baloev, director of the capital markets department at Cushman & Wakefield. In addition, the business center has an inefficient layout, near a stadium - many tenants did not like the neighborhood, adds Artemova. According to her, the VEB Arena began to fill up only in 2018, now 12% of the space is empty. Among the tenants are Transneft Technologies, IP Video Systems and PFC CSKA.
The club sold offices at the rate of 270,000 rubles. for 1 square. m, knows Artemov. It turns out that the club expects to gain 17.2 billion rubles for the business center, and its market price, in its opinion, is about 11.5 billion rubles. The assessment of Colliers International partner Stanislav Bibik is higher - 14-16 billion rubles.