The Kutuzoff Tower in Moscow, the most valuable of the foreign properties that were once owned by the children of the bankrupt businessman Seán Quinn, is likely go up for sale next year.
The office block, which two years ago was considered to have a value of approximately $180 million, is the subject of a bankruptcy process overseen by the Russian courts that involves a requirement to liquidate the asset.
The deadline for putting the building up for sale is likely to be early next year. The downturn in the Russian economy, due to the sanctions imposed because of the annexation of Crimea and Russian support for militias elsewhere in Ukraine, means commercial property prices in Moscow are down by up to 15 per cent.
Court-driven process
However the court-overseen process will involve a floor value below which the sale will not have to go ahead.
A Russian warehouse building that is part of the Logistica properties, also at one stage owned by the Quinn family, is also likely to go up for sale in a court-driven process next year. A portfolio of foreign properties worth approximately €500 million was the subject of a bitter and lengthy dispute between the former Irish Bank Resolution Corporation (IBRC) and the Quinn family. Mr Quinn and his son were jailed at one stage for contempt of court after it was ruled they had persisted with efforts to put assets associated with the portfolio beyond the bank's reach, despite orders from the Irish High Court.
Arrangement
Because of the difficulties IBRC was experiencing in asserting its legal control over assets in Russia and Ukraine, it entered into an arrangement with the Alpha Group in Russia whereby the two parties agreed on how they will share the proceeds.
It is understood the issue as to when it would be best to put various assets in the portfolio is the subject of ongoing discussions between the Irish and Russian sides. For a long time, IBRC found it impossible to assert control over the valuable rent rolls from the tower and a shopping centre in Kiev but these are both now believed to be secure.
IBRC is now in liquidation. The liquidators had no comment and a request for a comment from Alpha was met with no response.
