Russian Defense Ministry Will Sell the Land Near the Kremlin
OREANDA-NEWS The starting price of the site is almost 1.25 billion rubles. The auction is scheduled for mid-November
The Russian Defense Ministry put up for sale a site located on the island of Baltschug near the Kremlin. This information appeared in the website of the agent of the government on involvement of inefficiently used "Дом.РФ" (" Agency of mortgage lending ").
The land plot with an area of 1.36 hectares on Sadovnicheskaya street, which is adjacent to the Sadovnicheskaya embankment of the Drainage channel, is put up for sale. According to the publication, there are 13 buildings and structures with a total area of 7.8 thousand square meters. The starting price of the site is determined in the amount of 1 249 400 000 rubles. The auction is scheduled for November 16 this year. The deadline for applications is November 12, according to the website “Дом.РФ”
One of the consultants believes that the land offered for sale is the only place near the Kremlin, which is available to investors in the open market. "In active sale there are only inefficiently used buildings",— he noted. Another market participant confirmed the fact that there are no land plots suitable for development in this area.
The combination of these factors creates conditions for increasing the final price of the site on the balance sheet of the Ministry of Defense. "The starting price looks attractive even taking into account the fact that developers have different estimates of the expenditure part of the projects and have different expectations for revenue," told Oleg Takoyev, a partner of the Cushman & Wakefield evaluation Department. In his opinion, the total cost of the land can reach 1.3 billion rubles.
Colliers International partner Vladimir Sergunin believes that the land exposed by the Ministry of defense has a high potential, because it is located in a premium area with the existing infrastructure. According to his calculations, the cost of the residential project or the construction of apartments on this site can be 100-120 thousand rubles per square meter.
Baltschug island (Gardeners, Marsh island, Nameless island, Kremlin island, Golden island) is a historical area in Moscow. In fact, it is an artificial island on the Moscow river, because it is formed by laying a Drainage channel along the river Staritsa. Its length is about 4.5 kilometers, width-up to 400 meters. Administratively, the territory of the island is part of the Yakimanka and Zamoskvorechye districts of the Central administrative district of Moscow.