AFK Sistema Vladimir Yevtushenkov wants to reconstruct Charles de Gaulle Square at the Cosmos Hotel, opposite VDNH. But the developer will have to try to get permission for the project: this is a landmark, and the city is unlikely to agree on the next standard building, experts say.
AFK Sistema plans to redevelop the area of the Cosmos hotel owned by the corporation, two sources on the real estate market told Kommersant. Part of the hotel’s territory, including an extension with a concert hall, and the old office center on Mira Avenue, 176, located near Cosmos, can go under development. The latter is owned by the Schwabe holding, which is part of Rostec. Schwab said the holding does not plan redevelopment of the building. AFC said that the corporation has no relation to the office center, without commenting on the redevelopment of the rest of the area.
In the real estate segment, AFK Sistema controls a 25% stake in the Etalon Group. Earlier, the corporation also owned a 49% stake in Leader Invest, but in late July it became known that Etalon itself would become the sole owner of the developer. The Sistema website states that prior to the sale of Leader-Invest, the real estate portfolio in the corporation reached 4 million square meters. m
In the hotel market, Sistema manages 17 hotels with 4 thousand rooms. At the same time, even in the case of Cosmos, the corporation can be called a successful developer, Kommersant’s interlocutor is sure, although the hotel looks outdated, it works well from a business point of view and brings a steady income, mainly due to Chinese tourists. So the hotel itself will not go under redevelopment, the source of Kommersant is sure. For some of its projects, AFC is looking for a buyer, Forbes reported in the spring.
As Kommersant clarified, one of the interlocutors familiar with the project, Sistema is considering the construction of a multifunctional complex with a retail and office component and the development of public space. Perhaps housing will also be built on the site, because otherwise the project will not be interesting in terms of profitability. In any case, the holding will have to try to get through the urban planning and land commission, because the city is unlikely to coordinate mediocre development, he argues.
Sayan Tsyrenov, Director of PwC Real Estate Transactions Support Practice in Russia, considers the construction of a complex with a significant retail and entertainment component and apartments or an apart-hotel to be the best solution. Colliers International partner Vladimir Sergunin believes that the main function should be business-class housing. The project area of 50–55 thousand square meters. m in this case, 3–3.5 billion rubles will be required. investments, and the cost of apartments will be 200-250 thousand rubles. for 1 square. m. According to Mr. Sergunin, the investment attractiveness of housing will be positively affected by proximity to the VDNH metro station, and negatively - by the noisy and busy Avenue of the World.
Olga Zemtsova, Director of Strategic Consulting at CBRE, adds that it is justified to create a small shopping center of a regional scale near the Cosmos Hotel. The Golden Babylon shopping center is located far enough away, and this is the format of the weekend complex. There are a number of small retail facilities in the VDNH area, but they will not be able to compete with a quality project. The consultant estimates the volume of investments in the shopping complex at 2–2.5 billion rubles.
AFK Sistema plans to redevelop the area of the Cosmos hotel owned by the corporation, two sources on the real estate market told Kommersant. Part of the hotel’s territory, including an extension with a concert hall, and the old office center on Mira Avenue, 176, located near Cosmos, can go under development. The latter is owned by the Schwabe holding, which is part of Rostec. Schwab said the holding does not plan redevelopment of the building. AFC said that the corporation has no relation to the office center, without commenting on the redevelopment of the rest of the area.
In the real estate segment, AFK Sistema controls a 25% stake in the Etalon Group. Earlier, the corporation also owned a 49% stake in Leader Invest, but in late July it became known that Etalon itself would become the sole owner of the developer. The Sistema website states that prior to the sale of Leader-Invest, the real estate portfolio in the corporation reached 4 million square meters. m
In the hotel market, Sistema manages 17 hotels with 4 thousand rooms. At the same time, even in the case of Cosmos, the corporation can be called a successful developer, Kommersant’s interlocutor is sure, although the hotel looks outdated, it works well from a business point of view and brings a steady income, mainly due to Chinese tourists. So the hotel itself will not go under redevelopment, the source of Kommersant is sure. For some of its projects, AFC is looking for a buyer, Forbes reported in the spring.
As Kommersant clarified, one of the interlocutors familiar with the project, Sistema is considering the construction of a multifunctional complex with a retail and office component and the development of public space. Perhaps housing will also be built on the site, because otherwise the project will not be interesting in terms of profitability. In any case, the holding will have to try to get through the urban planning and land commission, because the city is unlikely to coordinate mediocre development, he argues.
Sayan Tsyrenov, Director of PwC Real Estate Transactions Support Practice in Russia, considers the construction of a complex with a significant retail and entertainment component and apartments or an apart-hotel to be the best solution. Colliers International partner Vladimir Sergunin believes that the main function should be business-class housing. The project area of 50–55 thousand square meters. m in this case, 3–3.5 billion rubles will be required. investments, and the cost of apartments will be 200-250 thousand rubles. for 1 square. m. According to Mr. Sergunin, the investment attractiveness of housing will be positively affected by proximity to the VDNH metro station, and negatively - by the noisy and busy Avenue of the World.
Olga Zemtsova, Director of Strategic Consulting at CBRE, adds that it is justified to create a small shopping center of a regional scale near the Cosmos Hotel. The Golden Babylon shopping center is located far enough away, and this is the format of the weekend complex. There are a number of small retail facilities in the VDNH area, but they will not be able to compete with a quality project. The consultant estimates the volume of investments in the shopping complex at 2–2.5 billion rubles.
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