OREANDA-NEWS. On 16 March 2009 was announced, that the city authorities are to hold an auction for the right to lease a site located in western Moscow set to be used for developing a mixed-use hotel complex.

According to a source from City Hall, the hotel complex is to be raised on the 0.34-hectare site, on 5B Shchorsa Street. Its total area is estimated to be 5,680 square metres. The structure will also include an underground parking garage for 31 vehicles.

The official emphasized that, at the moment, there wasn’t any real property on the building site allocated by City Hall.

Under the decree signed by Yury Roslyak, first deputy Moscow Mayor, an opening bid of the auction for the right to take a 24-month lease on the site intended for building the hotel complex will be 33.23 million roubles (~USD 1 million), a bid increment – 700,000 roubles (~USD 20,000).

The auction winner will have to transfer 20 per cent of the sum within 7 workdays after the journals of Moscow’s Tender Committee are approved and 80 per cent – within a year, by the equal quarterly payments.

The total reference investment in the project implementation, excluding the expenses for purchasing the right to lease the site and paying the credit interest charges, the site rental and the taxes added to the construction cost, is 313 million roubles (~USD 9 million).