The Moscow government is planning to auction off its floorspace in TsUM department store in September, Deputy Mayor Vladimir Silkin said, Interfax reported.
The city’s asking price for its share has not yet been determined, Silkin said last week. But it will be significantly lower than the price at which the city last tried to sell its stake. No buyers were found during a previous bid to sell the share for $16,000 per square meter, Silkin said. “We didn’t sell our space for that amount, and now a square meter costs $5,000, or possibly $6,000 or $7,000.”
Moscow owns TsUM’s sixth and seventh floors — 30 percent of the complex’s total territory. Silkin said that these floors were closed, although it has recently been discovered that in fact they had been operating. “We will check that information once more, and if it’s true, we will turn to the courts, as this is unlawful enrichment,” Silkin said.
TsUM was opened in 1885 and now is managed by Mercury Group, who, along with Bosco di Cilliegi, is the largest luxury products company in Russia.
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