21.05.2010

Auction on sale of lot owned by the Federal Fund for assisting development of housing construction

The Auction House of the Russian Federation held an auction on the sale of a plot of land owned by the Federal Fund for assisting development of housing construction.

The plot of land is situated at the address: St. Petersburg, Pushkin, lands of the St. Petersburg State Agrarian University, lot 17.

The lot is designed for objects of commercial activity, and conditionally permitted type of use is multi-apartment residential buildings.

Area of lot – 78,004 sq.m.

Number of bidders – 6.

Winner – Sfera acquired the lot for 163,000,000 rubles (starting price – 131,500,000 rubles).

The buyer plans to realize the project over the course of seven years.

The company specializes in building housing in St. Petersburg, and has taken part in land auctions several times. The company has four completed housing projects in St. Petersburg and five in the stage of construction. A company representative announced that on the lot it is planned to build a complex of buildings (residential and non-residential) with a total area of 100,000 sq.m.

 

“The main plus of this lot is that it was sold into ownership. The main minus is the incomplete set of documents. The investment attractiveness arises from the possibility to reach an agreement to build housing on part of the territory sold. According to our calculations, this may come to around 1.5 hectares. The rest is commercial and social development, with entertainment and sporting function. We assess this auction positively. The fact that the lot of such a large area designed primarily for commercial development drew serious interest from builders shows positive tendencies on the construction market. A year ago a lot of this kind would probably not have sold” (general director of Auction House of the Russian Federation Andrei Stepanenko).