Vedomosti is reporting that the Boris #Mints controlled О1 Group will become the sole owner of #O1Properties, by buying out minority stakes from Alexander Nesis’s ICT group and Forum Properties’ Andrey Barinsky and Vladimir Zubrilin.
At the end of 2017, О1 Group controlled 71 percent of O1 Properties with ICT group controlling 12.8 percent, Barinsky and Zubrilin having an 11.2 percent stake, and Goldman Sachs occupying the remaining 4.3 percent on the O1 Properties register. O1 Properties is one of Moscow’s biggest owners of A class business premises with more than 743,000 square meters and 15 business centres, including Belaya Ploshchad near Belarusskaya metro station and Vivaldi Plazа near Paveletskaya metro.
O1 Properties reported at the beginning of June that O1 Group had acquired the stake of Goldman Sachs. Now the other minority shareholders are selling their stakes too. Vedomosti was told ICT group will receive Zarechie business centre (15,517 square meters, located in the heart of Moscow) as payment for the stake, with an ICT group representative confirming this. Vedomosti reports that the Forum Properties owners will also receive 01 assets as payment, including Aurora Business Park (about 100,000 square meters) near Paveletskaya railway station. O1 Properties has never confirmed ownership of the Aurora business centre and referred to itself as manager of site. It is believed to have been used as payment when Barinsky and Zubrilin bought O1 Properties shares in late 2015. Currently, O1 Properties is building an A-Residence apartment complex (25,000 square meters) as a third stage of the Aurora project.
Forum Properties provided no comments to Vedomosti, while an O1 Group spokesman simply stated that they do not comment market rumours. Vedomosti was unable to confirm the claims about O1 Properties current ownership of Aurora Business Park shares, or their use in any buyout of O1 properties by O1 Group.
At the time of the deal in 2014, ICT group’s stake was valued at USD $247 mln with the company gaining a discount for the shares according to advisors who commented on the reports. They estimated the stake at that time at USD $170–200 mln. The market value of Zarechie currently is USD $100–110 mln subject to maintaining long-term lease agreements, according to Sayan Tsyrenov, director at property deals of PwC.
Vedomosti reports the difference between the original stake valuations and the current asset valuation will be made up with cash, and appears weighted in favor of the the Forum Properties owners. At the end of 2015, their stake was valued at about USD 160 mln and the Aurora business centre – at USD 250 mln. Aurora is currently valued at about USD $320–330 mln, according to Stanislav Bibik, a partner at Colliers International.
A deal with O1 Properties minority shareholders is vital for O1 Group to resolve issues with one of its creditors, an acquaintance of Mr. Mints was quoted as saying. The group owed about RUB 25 bn to the Credit Bank of Moscow. This loan was first transferred to Rossium (controlled by Roman #Avdeev), the bank’s shareholder. Rossium hired Riverstretch Trading & Investments (RT&I) to restructure the debt, and RT&I is now going to acquire control over the O1 Properties assets. A deal could be finalized once parties reach an agreement with O1 Properties bond holders worth USD $350 mln. The bond issue stipulates that holders are entitled to advance repayment in the event of a change of control. Negotiations are due to start this week, an acquaintance of Mints and a source close to one of the bond owners said. Mints and his family are currently in London. The Russian investigation committee is also undertaking a pre-trial investigation into О1 Group based on a statement from Mikhail Zadornov, deputy chairman of FC #Otkritie, according to acquaintances of Mints and Zadornov.
Vedomosti has no official information on RT&I beneficiaries market participants assume that the company is acting in the interest of Rosneft and Region group. It is also known that the Region group entities were the ultimate shareholders of RT&I until July 2016.