Alexander Zanadvorov, the owner of the network of supermarkets “the Seventh continent” and hypermarkets “Our”, completely out of the retail business. About it RBC said a source in the retail market. “The deal’s exit from the business will be issued as the sale of lease rights of all the shops and brand “the Seventh continent”, continues the interlocutor of RBC. — At the same premises as supermarkets and hypermarkets remain the property of structures Zanadvorov”.
Now “the Seventh continent” has 120 stores in Moscow. Almost half of them — 50 points format “shop at home” (an area of 300-500 sq m) is planned to pass on X5 Retail Group under its brand “Pyaterochka”, 18 grocery stores in “iconic locations in the centre of Moscow” (including supermarkets on Bolshaya Lubyanka, Manezh square and Serafimovich street) will get the “ABC of taste”. All 14 hypermarkets “Our” rent a network “the Tape”.
The brand “the Seventh continent” together with the rights of rent of 37 supermarkets and retail stock levels of this item will receive the holding “Sweet life” (distributor and franchisee of Spar, Eurospar and Spar Express). This is a longtime partner of “the Seventh continent”. In September 2016 the holding and the network Zanadvorov combined logistics, and the founder of “the Sweet life” albert Gusev joined the Board of Directors “the Seventh continent”.
The remaining 15 supermarkets “the Seventh continent” was put separately under “Magnet”, “Attack”, “Dixie” and other shops.
Alexander Zanadvorov, albert Gusev, the representative of “Azbuka Vkusa” confirmed RBC scheme of the transaction. “The company is considering a proposal to lease part of the premises that are currently occupied by shops “the Seventh Continent”, “Pyaterochka” or “Crossroads,” confirmed RBC representative of X5 Retail Group. In “the Tape” has not responded to a request to RBC at the time of publication.
Investor, not the seller
The delivery space shops rent will increase Zanadvorov position in the rating of Russian investor. By the end of 2016, he took 14th place in the list of Russia’s largest owners of commercial space, according to Forbes. The cumulative annual income of the businessman from the rental edition was estimated at $180 million.
As told RBC source close to the deal, all the supermarkets put on the average for ten years, “Ribbon” received hypermarkets for 15 years. The total area of rented premises is about 370 thousand sq. m. According to the interlocutor of RBC, supermarkets surrendered on terms of a bet 9-10% of the turnover of the store, hypermarkets and 3.5–5%. Zanadvorov he did not comment on the figures in various formats, but only noted that “the average rate for all leased facilities amounted to approximately 8%”.
Based on the statements of “Tape” for the first quarter of 2017, the average revenue of a single hypermarket may be about 1.5 billion rubles per year. Thus, the total annual payment for the rental of 14 hypermarkets at a rate of between 3.5 and 5% may be within 0,743–1,062 billion At the rating INFOLine, annual revenues excluding VAT of one capital “roundabout” is about 170 million rubles, “Azbuka Vkusa” — 580 million roubles, “the Seventh continent” — 370 million rubles., the “standard” network supermarket — about 400 million rubles. Thus, for supermarkets Zanadvorov can get new tenants at a rate of 9-10% of 3.51–3.9 billion rubles. per year.
According to a source RBC in the retail market, Zanadvorov income from the lease of the former “Seventh continent” can be more. According to the interlocutor, the average turnover in rented space (from 370 thousand sq m 185 sq m — shopping) is 300-500 thousand rubles. per 1 sq. m a year (without VAT). Then at an average rate of 8% rental can bring the businessman in the year to 7.4 billion rubles.
All property owned by Alexander Zanadvorov now concentrated in three controlled companies — OOO “Capital” (real estate of supermarkets “the Seventh continent”), OOO “Manezh square” (shopping center “Okhotny Ryad”) and LLC “United trade centers of the regions” (OTCR). The total area of all owned by the businessman of real estate is about 1 million square meters, told RBC a source close to Zanadvorov. “Manege square” — 70 thousand sq m, “Capital” — 510 thousand square meters and OTCR — 420 thousand square meters.
The latter company was established relatively recently, in September 2016, from the data “SPARK-Interfax”. Zanadvorov became its sole owner in December of last year. At the end of June 2017 in the number of shareholders appeared “daughter” of Sberbank, “Sberbank Investment”. According to the website OTCR, the company’s goal — the acquisition of property and real estate management in the regions of Russia. We are talking about hypermarkets “Our”, shopping centers in Rostov, Yaroslavl, Orel, and Nizhny Novgorod, the office center at Borovskoe shosse, as well as several hypermarkets in Obninsk, Chelyabinsk and Ryazan. These shopping centers belonged to the group of companies “Tashir”. The representative of the press service of the Zara she confirmed information about the sale, declined to comment further.
As explained a source close to Alexander Zanadvorov, all property owned by the businessman is pledged to Sberbank and its structures. The total amount of debt the three companies — about 70 billion rubles. “Recent loan of 20 billion rubles for a period of five years was issued OTCR scheme mezzanine financing, — says the source of RBC structure participation of Sberbank in the capital. — The sale of this property, the savings Bank will receive 25%, Zanadvorov — 75% of the transaction amount”.
The representative of the press service of Sberbank said that “this information relates to business relations between the Bank and the client,” which the Bank has not commented.
The output from the continent
“The seventh continent” was founded in 1994 by Vladimir Gruzdev. Zanadvorov was the owner of the network in 2002. In 2004 “the Seventh continent” went on IPO and raised in the placement in excess of $80 million in three years Zanadvorov increased his stake to 75%, and in 2010 bought from a family Foundation Gruzdeva another 21.3 percent of the company. Then “the Seventh continent” conducted delisted and became a private company, 100% owned by Zanadvorov.
As told RBC participants in the retail market, after Gruzdeva from the shareholders Zanadvorov has repeatedly tried to sell “the Seventh continent” as a project, but buyers have not found. “The stores are too diverse, and a single “lot” to sell them was very difficult,” explains sides.
In 2013, the company reached an agreement with X5 Retail Group to sell rental 130 stores for 15 years, the deal was estimated at $3 billion. However, Zanadvorov abandoned her, after he received a loan from Sberbank at RUB 44 billion, “I felt that it would be more rational to return to the question of the sale of the operating business in four or five years,” Zanadvorov said then.
But the exit from the retail business began Zanadvorov in the end, sooner, in 2016. In August of 2016 in “the Seventh continent” came a new CEO Anatoly Podlesov, whose task was to optimize the business and reduce the network to 156 stores up to 120 due to the inefficient points, mainly in the regions. “The concentration of business in one region will allow the company to save on logistics costs and focus on optimizing the network operation, which began in the summer of this year”, — has explained then Podlesov. In December last year, the group Dixy (discounter develops the same name, as well as Victoria supermarkets and hypermarkets “Megamart”) purchased from Zanadvorov part of the real estate “the Seventh continent” in Kaliningrad.