E. Kuzmina

The auction for the sale of the plot on Marshal Blucher Avenue was held by the property fund a week ago. The starting price for 33.5 hectares under power transmission lines (PTL) was 1.55 million rubles, and participants had to pay the same amount as a deposit. The winner must move the PTL underground (cabling).

Because the price was growing too fast, the fund announced a break. The second stage ended with the victory of Technopark Tsiolkovsky CJSC, which offered 3.1 billion rubles. Yesterday, the property fund announced that the auction was cancelled. The winner did not sign the auction protocol within the allotted three days, a representative of the property fund reported.

According to him, the price of the lot is being revised and will be brought up to the market level.

The decision to resell the site will be made next week, after which it must be approved by the St. Petersburg government, a representative of the construction committee said. He declined to name the date of the auction or the price of the lot. It was not possible to contact Technopark Tsiolkovsky.

Five applications were submitted for the auction, among the participants were Development Group LLC and FSK.

It is obvious that the auction was disrupted, the site is not worth that much, says Deputy Chairman of the Board of FGC Alexander Bobrov. According to him, the company participated in the bidding, but did not bid more than 100 million rubles. The land should not be expensive, since the cost of work to replace the overhead line with an underground cable on this site, according to the grid company, is at least 3 billion rubles, says Bobrov. He claims that FGC will participate in a repeat auction, the company plans to sell the land after laying the underground cable and demolishing the transmission line supports.

Development Group is also going to participate in the repeat bidding, says its CEO Evgeny Bond. He is ready to negotiate up to 2 billion rubles – at this amount, the project to build 700,000 square meters of economy-class housing is profitable. According to him, the expected investment in construction is $100 million. Cabling work, using modern equipment, will cost only 388 million rubles, he claims.

Okhta Group, which was interested in this site, will not participate in the repeated bidding, said Vladimir Svinin, the company's CEO. In his opinion, the volumes of social burden are unclear from the submitted documents, there are no technical conditions for connecting the infrastructure, there are not enough figures in the expenditure part, which makes it difficult to even calculate the density of development. According to his preliminary calculations, the developer must spend about 10 billion rubles even before entering the construction site. The project is simply unprofitable, the developer summarizes.

SK Temp looked at the site, but it was of little interest, as it is located in an unpopulated area and requires detailed study of the costs of moving cables, says Temp CEO Yuriy Luchko.

Regretted 3 billion rubles.