VTB sold Pekin Hotel, but part of payment from buyer restructured upon request

VTB has sold Pekin Hotel in Moscow, but a part of buyer’s payment was restructured upon request, said Andrei Kostin, head of the bank at a press-conference during "RUSSIA CALLING!" Forum.

The owner of Pekin, "Gals-Development" of VTB Group, announced of the upcoming sale of the asset to “Hotel Complex Zhemchuzhina" this January. The parties planned to close the deal before July 31. The deal’s financial conditions were not disclosed.

"We sold it. There was some delay in settlements, but essentially they paid the first installment and asked to delay further payments ", - he said.

A meeting of shareholders of HC Zhemchuzhina in December 2019 passed a resolution to acquire shares of GOK Pekin for RUB 4,8 bn, which is the price of the deal. The primary asset of the sold company is the hotel building with the total area of about 26 K m2, at a land plot of 5,6 K m2.

Hotel Pekin was built in 1939-1958 in the center of Moscow and designed by architect Dmitry Chechulin. The asset is located at the intersection of Tverskaya Street and the Garden Ring at the following address: Bolshaya Sadovaya Street 5. The asset is within walking distance from the Kremlin, the Red Square, main theaters and museums of the capital city.

In June 2019 "Gals-Development" tried to sell the hotel at an open auction for RUB 5,67 bn, but the auction was canceled due to lack of bids.

JSC " Hotel Complex Zhemchuzhina " owns a hotel under the same name in Sochi. According to the list of affiliated persons for March 31, 2020, 34,04% of JSC shares belong to a Cyprus-registered Pecomalco Investments Limited, the ultimate beneficiary is unknown.