“DelovoiPeterburg” publishes Andrei Mikonin’s comments in the article “Frozen demolition”

21 January 2013
An owner of the space at 9, Sytninskaya Street prohibited “UNISTO Petrostal” against demolition of dangerous building with a court injunction.

The 13thArbitrazh court of appeal held that the city administration had mistakenly recognized the six-storey historic building at 9, Sytninskaya Street as a dangerous building.

Last October, the group of companies “UNISTO Petrostal” bought from the Property Fund of Saint Petersburg 2700 m2 space in this building as well the nearby houses (5285m2 of space and 0.5 ha of land).

The purchase amount composed 150 million roubles. To be mentioned, the group of companies decided to build a 25000 m2 multifunctional complex at the Sytninskaya street for approximately 1,5blnroubles.

It was generally known that the investor will have problems with execution of the project because of a long-term conflict between the city administration and the last owner of the 210 m2of space - “Magazin “Elias” OOO (LLC). The company rented these spaces to an alcohol shop.

Some years ago, the Property Fund of Saint-Petersburg failed to persuade “Magazin “Elias” to sell the controversial spaces. 2007, “Poles’ye-Don” OOO (LLC) became an owner of the spaces, Finally, the latter sold the spaces to the Property Fund of Saint-Petersburg.

In 2011, founders of “Magazin “Elias” Galina Eliasshtam and AdilaAgeeva succeeded in adjudication of a contract with the “Poles’ye-Don” OOO (LLC) as void so they could recover ownership. Nowadays, according to SPARK, the company is controlled by Vadim Kalinin (refered to “Vetkom Trading” company).

In 2008, the Dwelling Committee of Saint-Petersburg recognized the building as dangerous. In February, 2012, the committee required demolution of the building. However, “Magazin “Elias” LLC founders challenged these resolutions after recovering of ownership. The court took their side in the end of December 2012.

According to AndreyMikonin, partner of S&K Vertical law firm representing “Magazin “Elias”, today his clients are ready to sell their asset for a fair price.

“According to documentation of a recent tender the City Administration appraised challenged building and land less than 4 million rubles. This is a price for whole building with land in the historic center nearby PetropavlovskayaKrepost’!”, - AndreyMikonin said.

However, the price for challenged spaces has decreased dramatically since 2007. .In 2007 it was $5.5 thousand per square meter and now it cost works out $2.3 thousand per square meter according to NAI Becar.

Representatives of the Dwelling Committee could not comment this information at the moment. CEO of “UNISTO Petrostal” ArseniyVasil’yev didn’t answer the calls.

“I suppose this decision would be appealed” – said Igor’ Pahorukov, the Property Fund’s of Saint-Petersburg CEO.


“DelovoiPeterburg” № 005 (3738) 21.01.2013

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