19.01.2016 RBC

PIK sold the land plot at Krasnaya Presnya to MonArkh Group

Group of Companies PIK closed the sale of the land plot in the territory of the non-operational Krasnopresnenskiy Sugar Refining Factory, as reported in the Group official press-release on Tuesday. The land plot spoken of is that of 6,8 hectares in the historical center of Moscow on Mantulinskaya street of Presnenskiy district. The receipts from the sale were used to decrease the company debt burden – was reported in the press release.
Neither the transaction amount nor the name of the purchaser were disclosed by the company. Manager of a large development company told RBC on the anonymous basis that the land plot was purchased by “MonArkh” development group of companies. Indirect evidence of the Factory ownership change can be found in the Unified State Register of Legal Entities: Sergey Ambartsumyan – the general director and the majority holder of “MonArkh” group of companies – was appointed the Factory general director.
Ambartsumyan confirmed purchase of the land plot to RBC. According to him, the project is now in the design stage and launch of the development is planned by “MonArkh” not early than the second half of the year. Ambartsumyan did not disclose the transaction amount.
The transaction amount according to RBC’s source comprised about 9,5 billion robles. Back in 2014 the Reuter’s source estimated the transaction in the range of 11,5 billon rubles. Maxim Leschev – the general director of GEO Development – agrees that the fair value of the project is around 10 billion robles.

The project implies development of 98 000 square meters of residential housing and 17 000 square meters of commercial and social infrastructure – that was approved by Moscow City planning Land Commission several years ago. The total development will comprise 193 000 square meters. “The project concept had been elaborated already and we liked it” – Sergey Ambartsumyan told RBC – “we will develop business plus residential housing in this land plot”.
Initially PIK planned to develop elite residential housing and commercial premises in this land plot itself. But in September 2014 the company changed its strategy. Then Sergey Gordeev – the president and the major shareholder of the group – for the first time declared this land plot to be a non-profile for the company focused on mass-market residential housing.
Back in 2014 Reuters wrote that PIK negotiated sale of the project in Krasnopresnenskiy Sugar Refining Factory territory to the structure of its major shareholder and president Sergey Gordeev. Dmitry Rodin – the head the investment company “Platforma” managing some of the Gordeev’s assets – then told Reuters that his company consulted on the transaction but was not the purchaser. “Platforma” never was interested in acquisition of this asset” – Boris Golubev- the representative of the Platforma investment department – told RBC on Monday.
“MonArkh” group of companies began its history in 1994 when Sergey Ambartsumyan established his first private development company ASMI (decodes as “architecture, development, management, art”). The company acted as a subcontractor. The new structure – “MonArkh and C” (monolith architecture and development) – was established by Ambartsumyan in 1999. Later he was employed in the position of the “Glavmoststroy” first vice-president for several years. Ambartsumyan established the “MonArkh” concern in 2003. The same year he took the office of the deputy of Vladimir Resin, who headed the department of city planning, development and reconstruction of Moscow in Yuri Luhzkov time.

Later “MonArkh” won a number of large city development contracts. After Beslan tragedy in 2004 the Moscow government entrusted the “MonArkh” concern to develop two new schools in the city suffered the terrorists attack. In 2005 the project of state buildings of Mayor’s office and Mosgorduma in the international business center “Moscow city” appeared among the “MonArkh” projects, which project however was never accomplished.
PIK Group is one of the leading Russian developers. In 2006 the company did the IPO and went public. The major owner of Joint Stock Company “PIK Group” is its president Sergey Gordeev, holding 29,9% of shares. Mikchail Shishkhanov, the owner of Binbank, controls 9,8% shares and 16% shares belong to the businessman Alexander Mamut. Free float shares of the company comprise 44,3%. PIK Group Companies revenue amounted to 61,3 billion rubles in 2014.