Timchenko wants to get his share of land near Zaryadye

Timchenko wants to get his share of land near Zaryadye
Gennady Timchenko

Volga Group is going to take part in the auction for reconstruction of the former military academy on the Moskvoretskaya Embankment.

Gennady Timchenko’s Volga Group intends to purchase the site, on which the facilities of the former Peter the Great Military Academy of the Strategic Missile Forces are located. In 2015, the educational institution was moved to Balashikha. Top managers of several large investment companies that are also considering the possibility of buying these buildings told this to Vedomosti. At the same time, one of Timchenko’s partners said that no final decision to participate in the bidding has been made yet.

The initial value of the lot at the auction to be held on October 27 is 8.6 billion rubles ($149.19 million).

A total of 33 facilities with an area of 113 thousand square meters, located in an attractive area of Moscow – on Moskvoretskaya Embankment, across the street from Zaryadye Park, are put up for the auction. At the same time, nine buildings of the complex are objects of cultural heritage, for example, the former Educational House, built in 1764 according to the project of Karl Blank. After 1917, it hosted the Palace of Labor, and then, starting in 1938, Dzerzhinsky Military Academy was located here.

The project estimated at 18.5 billion rubles ($320.9 million) involves renovation of buildings, after which their area should increase to 173 thousand square meters. Apartments, hotels, shops, sports and exhibition spaces, and warehouses are to replace the academy.

At the same time, in an interview with RBC, Volga Group representatives said that Timchenko has no interest in this plot of land. If the company wins the auction, the oligarch’s partners – Russian company Vesper, specializing in the construction of luxury real estate, and a certain Chinese investor – will undertake the renovation works.

The information that the authorities in Moscow were going to sell the site came to light in late July. In an interview with Kommersant, Director of the Department of Capital Markets at CBRE Irina Ushakova said that, given the uniqueness of the project, the size of the site and the possibility of increasing its area, its value at the auction can grow twice. As for the cost of renovation, the founder of Ivashkevich Hospitality, Stanislav Ivashkevich, estimates it at over 30 billion rubles ($518 million). One of the publication’s interlocutors, who represents the real estate market, has suggested that the auction parameters seem to be directed towards a specific participant, since the price is extremely advantageous.

Let us note that, according to Forbes rating of the richest businessmen of Russia, Timchenko ranks 4th in 2017: his fortune is estimated at $16 billion.

Since 2014, Timchenko and other Russian businessmen from Putin’s inner circle have been targeted by the US sanctions. In March 2017, the State Duma adopted an amendment to the Tax Code allowing him and other Russians affected by sanctions not to pay taxes in Russia. The law is retroactive and allows to return the income tax paid since 2014.

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