Hitech Development Acquired Sites for Elite Real Estate on Pyatnitskaya

The company Gals-Development sold a 0.11-hectare plot on Pyatnitskaya Street in central Moscow. A source close to one of the parties to the deal told Vedomosti about this.

According to the source, the buyer of the plot was Hitech Development. The EGRUL register shows that on 13 December, the new owner of Gals-Razvitie — the company that holds this plot on its balance sheet — became LLC Khaitek Management.

A representative of Gals-Development confirmed this information. The company did indeed acquire the asset, said Hitech Development owner Alexei Samoylov, but declined to disclose details.

On this plot, according to the urban development plan, it is possible to build 3,800 sq.m. of commercial real estate. Samoylov clarifies that this will be the mansion "Pyatnitskaya, 40 Chalet," including residential residences, offices, and a SPA. In addition, according to him, the company intends to reconstruct a residential building located on a neighbouring plot on Pyatnitskaya Street (with an area of 970 sq.m.), where the Friday townhouse project at Pyatnitskaya 37 will appear. According to SPARK-Interfax, Hitech Development purchased this plot in August of that year from businessmen David Sorokin, Boris Tsyrkin (co-owner of developer Kaskad Family), and Vladimir Ilyin. They could not be reached for comment.

Hitech Development, founded in 2015, is part of the Hitech group of entrepreneur Alexei Samoylov, who specialises in telecommunications, IT, medicine, and development. So far the company's portfolio includes only one completed project — the Park Plaza apart-complex on Mikhalkovskaya Street near the Golovinsky Ponds.

The market value of both plots on Pyatnitskaya Street is estimated by Ricci | M&A partner Petr Vinogradov at 550–600 million rubles. Managing partner of Intermark Urban Real Estate Dmitry Khalin believes their price could be slightly higher — 600–700 million rubles. A further approximately 2 billion rubles, in his opinion, will need to be invested in the implementation of the projects themselves.

Samoylov, however, says that costs will be higher — 2.5 billion rubles. But these costs will pay off. According to Khalin, at a selling price of 1.5 million rubles per sq.m., revenue would amount to approximately 4.5 billion rubles.

Housing and apartments on Pyatnitskaya Street will be in demand, consultants believe.

NF Group partner Olga Shirokova says that Hitech Development's plots are located in the most prestigious part of the Zamoskvorechye district, inside the Garden Ring. This particular location has become a centre of attraction for elite housing developers in recent years. Vinogradov notes that projects such as Armani/Casa Moscow Residences (developer — Vos'hod), Lavrushinskiy (Sminex), Russkie Sezony (structures of Igor Rubiner), and others are already under construction here.

However, small projects like those of Hitech Development find it quite difficult to compete with larger complexes that can offer everything from their own grounds and luxury entrance lobbies to a variety of amenities, Khalin notes. But on the other hand, he says, their construction timelines are shorter, and the housing in them can be purchased by a single family or a group of like-minded people.