MIL OSI Translation. Region: Russian Federation –
M. Denisov. Mos.ru
In just nine months of 2020, 633 urban objects were sold at auction. This is 21 percent more than in the entire last year.
The number of objects sold per year in electronic auctions has more than doubled in seven years. In just nine months of 2020, 633 objects were realized. This figure has already exceeded the sales of the entire last year by 21 percent. This was announced by the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov…
“In the period from 2014 to 2018, an average of 250 urban real estate objects were sold through electronic auctions annually. In 2019, when the development of lot documentation and regulatory documents was also transferred to electronic format, a record figure of 522 objects was achieved. And for the first nine months of this year, also thanks to the launch of registration of sale and purchase agreements exclusively in electronic form, 633 lots have already been sold at the auction for a total of almost 3.5 billion rubles, ”said the vice mayor.
During the entire existence of the system, about 2.5 thousand urban real estate objects with a total area of 271.5 thousand square meters and a total cost of 23 billion rubles were sold at electronic auctions.
“The most expensive urban real estate ever sold at electronic auctions is located in the Central Administrative District of Moscow. Non-residential premises with an area of 383.2 square meters on Tverskaya Street were purchased in 2016 for 331 million rubles, almost twice the starting price. The second in cost was an object with an area of 958.2 square meters on Balchug Street – it was bought in 2017 for 271 million rubles at an initial cost of 268 million rubles. And last year 624.7 square meters of non-residential real estate on Maroseyka was sold through a public offer for 133 million with a starting price of 106.5 million rubles, ”said the Minister of the Moscow Government, head City Property Department Maxim Gaman.
Decisions on the use of real estate objects are made collectively by a special commission of the City Property Department for the involvement in the turnover of real estate objects owned by the city. This takes into account the functional purpose, current state and other aspects. When preparing objects for privatization, comprehensive interdepartmental work is being carried out in cooperation with the Department of Cultural Heritage of the city of Moscow, Moskomarkhitektura, Department for Civil Defense, Emergencies and Fire Safety, MosgorBTI, Rosreestr and other structures.
According to the head Moscow City Department for Competition Policy Ivan Shcherbakov, Since 2014, competition in city e-tenders has grown significantly.
“We see an increase in the interest of entrepreneurs to participate in city auctions, the competition is increasing every year: in 2014, when electronic auctions had just started, the competition in tenders for the sale of non-residential premises was five people per lot, this year this figure is already at the level of seven people per lot “, – said Ivan Shcherbakov.
The legislation of the Russian Federation and the city of Moscow in the field of privatization provides for three sequential methods of selling urban real estate: auction, public offering and sale without price announcement. At the same time, the use of secondary methods is a right of the city, but not an obligation. The exception is the privatization of cultural heritage objects: such lots can be sold only through a tender, without secondary methods.
The first stage in the sale of city property at auction is the auction. In the fight for the lot, the participant who offers the highest price wins. In this case, at least two applicants for the object must participate in the auction. The auction, in which only one investor took part, or which did not arouse interest at all, is declared invalid. In this case, within three months, the city can announce the next stage of implementation: sale through a public offer. The initial bid price is set the same as at the auction – at the market value based on the results of an independent appraiser report. The cut-off price is 50 percent of the starting price. If less than two participants are interested in the lot, the sale is declared invalid.
The third possible step is selling without declaring a price. In this case, the seller, that is, the city, does not set the value of his lot. The buyer does this. The one who offers the highest price wins the fight. If one investor participates in the auction, then he buys the lot for the price that he himself sets.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.