GOSTINY DVOR

Russian version of the page

The Joint Stock Company “Gostiny Dvor” was floated on January 22, 1996 by the Moscow Property Management Committee. Certificate of registration No.060034 was issued on February 15, 1996.

Main activities:

• Restoration and reconstruction of the Old Gostiny Dvor, conversion of the said into a multi-use center.
• Management of the restored property under a trust agreement No. 1/251-p of July 23, 1996 with Moscow City Government (Moscow Property Management Committee)

The Old Gostiny Dvor was created from a design of the great Italian architect Giacomo Quarenghi and executed by Russian builders and artisans. It was a design conceived for commerce and was uniquely suited in function to the execution of commerce of the day - that of early 19th Century Moscow.
Please click on the image to the right (and any one below on this page) to get a full-screen picture.

Historically, Gostiny Dvor has played a prominent role in the life of City of Moscow. People have come to Moscow to engage in trade and make purchases for centuries. Once in Moscow, they flocked to trading districts such as Kitai-Gorod and visited places such as GUM and Gostiny Dvor where they could find the highest concentration of shops and, perhaps find the best bargains.

The project is located in the very centre of Moscow in the preserved area known as “Kitai-Gorod” (China Town). This prestigious location is adjacent to Red Square and is within easy walking distance of the premier hotels and main subway and transport routes.

The challenge today is to develop this landmark in such a way that it is sensitive to its architectural heritage while at the same time being sensitive to its historical commercial nature such that its function meets modern commercial demands.

Our plans to rebuild the old Gostiny Dvor have created the opportunity to return this architectural monument to its former grandeur as a shopping destination not only for Moscow but for the entire country.

The project “Old Gostiny Dvor” was initiated by the Moscow City Government which at the moment owns 100% of the project. Gostiny Dvor is supposed to represent an important feature of the city’s 850 year anniversary celebration in September 1997 and the Government is firm in its intention to provide the JSC “Gostiny Dvor” with every possible assistanse to get the restoration of Gostiny Dvor finished in due time.

The project design was elaborated by Architectural Workshop No.15 at Mosproject-2.

The project comprises the reconstruction and restoration of Gostiny Dvor while changing the building utilisation to a mixed use development comprising banking, trading, offices, restaurants, residential accomodation and car parking. The total development area is approximately 81,634 sq.m.

A phased approach is a vital part of the overall development plan. The development is planned to be executed in two phases:

• Phase 1- 25,000.00 sq.m -(Retail, Office, Bank) - to open in summer 1997.
• Phase 2 - (Hotel, Office) -to open in September 1998.
  Total cost, USD 372,000,000.00.

The Project’s space has been allocated in such a way as to increase retail component and create a structure which will generate a higher cash flow and be attractive to outside investors.

Space Mix

Rentable Area Summary

In order to add significant value to the overall project we plan to build a parking garage in a double helix configuration comprosing car wash stalls. This design dramatically increases the number of parking spaces. The planned double helix structure will accomodate over 800 vehicles in all.

The parking garage will especially add value to the greatest potential income generating portion of the building: retail.

In addition to increasing the overall retail area, the plan also creates several features which will make the retail space more attractive and profitable. The retail space created by the courtyard construction will allow the project to accomodate one or to anchor tenants. Anchor tenants will attract shoppers to the project as well as other retailers who will want to be located in the same project.

The inner courtyard covered by a glass atrium ceiling will provide space dedicated to civic functions. This treatment will create a very attractive ‘people space” which would be suited for a variety of public and commercial purposes.

The courtyard construction also creates very favorable circulation patterns throughout the retail portions of the project. This improved circulation maximizes the foot traffic going by each location and increases the value of the space significantly.

The world experience shows that multilateral business, trade, cultural and social contacts realize at their best within an integrated business complex featuring convenient location within the city, efficent transportation, sophisticated engineering infrastructure, architechtural impressiveness, as well as services and management quality meeting highest international standards, The reconstructed Gostiny Dvor will represent such integrated complex offering a chance for new quality of life for Muscovites and international business community in the capital of Russia.

Financial projections for the Gostiny Dvor project are based on a list of assumptions for prospective cash flows prepared as a part of the Feasibility Study of the project by Hines International, Inc. Dallas, Texas, USA. The total cash flow before debt service and income tax is derived by subtracting total operating expences and leasing and capital costs from the effective gross revenue. We calculate the effective annual gross revenue to be $33,677,177. The average annual cash flow before debt service and income tax is $23,167,575.

The parties interested in participation in the project could contact us at:

Telephone: (7 095) 298 55 49
fax: (7 095) 298 00 25
or e-mail [email protected],
Alexander Melnikov

Old Gostiny Dvor 10-year cash flow, US$

Total construction cost

(including car parking and atrium)- USD 300,000,000.00

Amount of credit constitutes 76.6% of total construction cost, term of credit is 10 years at 7% annual rate.

Gostiny Dvor Plc

General Director V.Solovyov

tel.: 7-095-298-55-49

fax.: 7-095-298-00-25

e-mail: [email protected]