On 18 December, the Auction House of the Russian Federation (AHR) by order of the Glavstroi-SPB company, part of the construction sector of one of Russia’s largest diversified industrial groups, Bazovy Element, held an auction for the sale of built-in non-residential units in the “Severnaya Dolina” residential complex.

A total of 10 units were realized at auction.
Total price of objects sold – 411 million rubles.
All the units were realized with an increase of the starting price. The average increase was 1.3 times. For some units, it reached 1.5 – 2 times.
The units are located at the address: St. Petersburg, Pargolovo village, 4 A Fyodora Abramova Street.
They are all leased out at market rates. They contain: a branch of Sberbank of Russia, a grocery store, café, dental clinic etc.

“We are satisfied with the results of the auction, which showed the high interest of market participants in built-in non-residential units in ‘Severnaya Dolina,’” says the commercial director of Glavstroi-SPb Alexei Gusev. “These results are characteristic: our units are located on the firs floors of a major housing complex where over 15,000 people currently live. The units are leased out at market rates, and the lease holders are reliable. All of these factors combined ensure investment attractiveness for investors, and good revenues”.

“A major auction by a private business is always an event for the market. Private companies usually prefer to close deals in a targeted manner. And in this sense, today’s auction is unprecedented for the Russian market of commercial real-estate. This is the first time that such a significant pool of objects has been sold by a private owner, and sold effectively, thanks to the selective auction form of realization, and thanks to the fact that all of the lots up for sale are objects of high-quality street retail. As a result, the number of potential buyers for individual lots reached 15,  and there was a rise in price for all the objects at the auction, and in some cases up to one and a half to two times.

We hope that today’s auction will mark the beginning of auction sales of private commercial real-estate. We also expect to continue the practice of working with the Glavstroi-SPb company, and working with other owners. At present, we are holding talks on the sale at auction of commercial auctions with a number of private companies in St. Petersburg and Moscow, “ Andrei Stepanenko, the general director of the Auction House of the Russian Federation, said after the auction.