Moscow authorities, Gutseriev to build 60-billion-ruble residential complex

Moscow authorities, Gutseriev to build 60-billion-ruble residential complex
Mikhail Shishkhanov, businessman

The project is to become unprecedented both for the public developer and the private company.

Moscow-owned Upravleniye Eksperimentalnoy Zastroiki Mikroraionov (Experimental District Development Dpt.), abbreviated UEZ, has entered into an investment agreement with Inteko Group to build a 700,000-meter residential complex in western Moscow, the Federal Antimonopoly Service reported.

The project that is worth 60 billion rubles promises to be the largest one for both parties: Inteko JSC, Minskiye Holmy LLC and the UEZ.

According to SPARK (Russian companies database), LLC Minskiye Holmy is 100% owned by Inteko, which Binbank’s owner Mikhail Shishkhanov had bought from Yuri Luzhkov’s wife Elena Baturina in 2011. Inteko now is a part of Safmar Group that belongs to the Gutseriev-Shishkhanov family.

As reported by RBC with reference to the Inteko press service, the multifunctional residential complex is to be constructed at the intersection of Minskaya Street and Moscow Railroad of Kiev direction at an area of 48 hectares. The total area will amount to 707.000 m2, of which 352.000 m2 will be allocated for residential apartments. According to RBC, "preliminary works to obtain initial permits" will be carried out in 2017.

Experts estimate the cost of the residential complex including commercial real estate and car parks to be about 60 billion rubles. Within 6 to 8 years, the project founders will earn about 84 billion rubles on housing sales. The total project revenue with the commercial real estate and parking will reach 100 to 110 billion rubles within 8 to 10 years.

Inteko did not specify any details of how the partners are going to share their functions. UEZ has had collaborations with private companies before. In September 2016, media reported that UEZ was to build 109,000 m2 Positiv Residential Center with Pavel Tio’s Capital Group. Then, like now, the parties to the contract refused to disclose any details.

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