Moscow will sell a third of Central Department Store in an auction where the initial price has been set at RUB 4.3bn. The building is so unique as to make it recession-proof according to local retail experts. However, the only serious contender in the auction is thourgh to be the company Mercury which currently controls the department store.
Central Department Store (GUM) is located in the center of Moscow and offers top of the line shops in 19,000 sqm of GLA. It was built in 1906 by the architect Roman Klein and is protected under cultural heritage regulations. The new owner would be obliged to comply with all relevant rules governing the maintenance of its cultural and historical value. The building is currently leased to the JSC Trading House TSUM through 2045.
“The building of the Central Department Store is truly a trophy asset and remains attractive to investors because of its unique location, and its cultural and historical value. The opportunity to acquire it, even partially, is rare,” says CBRE’s Eldar Asadullayev. But in a previous attempt to sell the property, the city of Moscow was unable to find a foreign investor as expected and so removed it from the market. The current attempt to sell it will last until April 27 and requires a deposit of RUB 433m.
