RusRating assigns credit rating to OOO Riviera
The rating is based on the high market value of the retail and entertainment complex owned by the Company and scope for support from the Company’s own ultimate beneficiary owner.
Constraining factors include a high debt burden, the need for additional financing, risks associated with an incomplete real estate development project, and uncertainty in the retail property market.
About the Company
OOO Riviera is a real estate development company that owns the Riviera retail and entertainment complex in Moscow (ul. Avtozavodskaya d.16-18). The centre is a three-storey, 300 000 m2 facility with 100 000 m2 of leasable space. Preliminary contracts have been signed with anchor tenants accounting for 20% of GLA, specifically Ashan City, M.Video, Sinema Park and Detski Mir [trs. Children’s World]. The centre is currently under construction and is scheduled for completion in the spring of 2016.
OOO Riviera forms part of a larger development group whose ultimate beneficiary owner is Sergei Eduardovich Gordeyev.
At this time the Company’s debt burden is high and in RusRating’s view there are no indications of a downward trend. The Riviera complex accounts for the bulk of assets. Operations are financed by a loan from Bank FC Otkritie; own funds are negative. Current liquidity is sufficient but the Company will need additional financing in the near future. Risk sensitivity is elevated.