VEB will sell for debts created for the Olympic games, the Radisson Blu

VEB will sell for debts created for the Olympic games, the Radisson Blu


The place of meeting with Putin

“It was this opinion that the Olympic assets — bad assets. But it is certainly not bad assets. The situation in the tourist market, that actively grow sales of Sochi as the mountain cluster, in the cluster of the sea”, — said the President of Vnesheconombank Sergey Gorkov at the St. Petersburg economic forum (quoted by “Interfax”). According to him, the Bank already has buyers for some assets. Deputy Prime Minister Dmitry Kozak said that we are talking about the sale of the hotel, are pledged to the Bank, but did not name any.

A Federal official and a source close to VEB told that the Bank is negotiating the sale of the Resort & Congress Centre. The official explains that the hotel went to the Corporation for debts: the borrower, the structures of businessman Abbas Aliyev, are unable to pay off the loan, despite the increase of tourist flow to Sochi. According to a source close to the VEB, the negotiations involved multiple buyers, but to call them and estimated terms of the transaction, he could not.

Radisson Blu Resort & Congress Centre 508 rooms is located on the shores of the Black sea, in Adler. Close to the Marina and Olympic Park. The hotel was built a few years before the Olympics. During the Olympic and Paralympic games it was members of the International Olympic Committee and high-ranking Russian officials.

The hotel is often used for events of high level. Since 2012, there are annual meetings of Prime Minister Dmitry Medvedev with the owners and top managers of large Russian companies during the investment forum in Sochi. There’s also hosts an annual reception for forum participants on behalf of Medvedev. In 2016, Russian President Vladimir Putin at the Congress centre of the hotel met dozens of leaders in the business forum Russia — ASEAN.

Territory five-star Radisson Blu Resort & Congress Centre Photo: Mikhail Mokrushin/RIA Novosti

The Borrower Aliyev

VEB sells debts for the first time in Olympic venues. The Corporation on behalf of the government was one of the creditors of the Olympic construction. She gave me 20 credits to 241 billion rubles., including structures billionaires Vladimir Potanin, Oleg Deripaska and Viktor Vekselberg. Company had to start to repay the loans in 2014, but most of them asked for a stay and debt restructuring. Possible losses from Olympic loans, VEB has been estimated at 190 billion rubles last Thursday, June 23, the head of the Bank announced the restructuring of Olympic loans for 25 years.

Stating that the Bank was going to issue a loan to CJSC Hotel development for the construction of the Radisson Blu Resort & Congress Centre, reported in 2011, the newspaper “Vedomosti”. The cost of construction was estimated at 6 billion rubles, 70% of which the credit of the Bank.

According to “SPARK-Interfax”, 99% of CJSC “Hotel development” is owned by FD Management, which is 100% owned by the Cypriot Kernan Management Ltd. “Vedomosti” and “Kommersant” called the owner of ZAO entrepreneur Abbas Aliyev, former President of the tourist company “Intourist”. In February, the Moscow Arbitration court has satisfied the claim of Vnesheconombank to JSC “Hotel development” and five other companies about collecting on credit contracts of 23.5 billion rubles. It was about the construction loans in Gelendzhik, Kempinski Grand Hotel and apartment complex “Gardens of seas”. Representatives of the defendant said that the borrower is unable to serviced loans due to the deterioration of the financial situation. Net loss (RAS) of CJSC “Hotel development” at the end of 2014 was 50.5 million rubles, in 2013 — 438,6 million rubles.

In the management of the hotels Radisson Rezidor Hotel Group declined to comment and was advised to go to the web. The employee heard that the hotel in Sochi is owned by the Bank. In the company “Hotel development” phones are not answered for several days.

According to a senior Manager PwC Andrey Tonkonogov, price premium five star hotel in the Imereti lowland of Sochi will be around $250-300 thousand per room, or $125-150 million for the hotel. “The hotel real estate segment is very specific, and often ending market value is not based on the financial performance of hotel investments, and from desire a potential buyer to purchase a quality asset managed by an international operator,” he explains. The expert said that the final cost can be formed only after a careful analysis of financial and economic activities of the asset.