The investor, who purchases areas in the Central Department Store, will have to wait for the investments to return for 65 years
The rent rate of the historical building of the Central Department Store (total area of 12 270 sq. m) is of 3540 roubles, or approx. $60, per square meter per year without VAT. This is according to the ancillary agreement to the agreement on rent and security between the trading house (TH) CDS and the owner of the property – the Moscow Property SUV (owned by the Property Department of Moscow). The document is published at the website of the Moscow Competition Policy Department, which is getting ready to sell the Mayor’s Office-owned areas of the famous department store on an open auction on April 30 of 2015. This means that commercial areas in the very center of Moscow cost TH CDS 51,3 million roubles per year with VAT (circa $880 000). Said rate has been in effect since September of 2014, and it was even lower before that. The trading house had paid Moscow 8,6 million roubles per year (approx. 700 roubles per sq. m) since 2011 till 2006, and 22,6 million (1840 roubles per sq. m) – since 2006 till 2014. According to the document, the rent rate is reviewed every five years.
The CDS complex includes the historical building as well as a new structure with the area of 45 000 square meters. A part of the latter is also owned by the Mayor’s Office of Moscow - 7000 sq. m, also rented by TH CDS. The city is also planning to sell those on April 30 <...>
Alexander Bolomatov, Partner of the Law Firm "YUST", says that the existing rent agreement cannot be terminated unless there is an agreement of the parties. However, the new investor may file a claim with the court for some formal reason or another, for example – pointing out an undue use of the property. The lawyer believes that the court may rule to his benefit and oblige the parties to terminate the rent, and execution of a new agreement on new terms may also follow.
Rankings and Partners
