Kenes (Kenges) Rakishev Envisages New Possibilities for a Troubled Asset in Dolgostroy, Poklonnaya
Kazakhstan businessman Kenes Rakishev is widely known for his experience and success with troubled assets. One such asset in which he has shown interest is a multi-use complex on Poklonnaya Street in Moscow that was previously owned by Mukhtar Ablyazov, a disgraced businessman. In March 2018, Rakishev announced his interest in turning the once promising, but now failed, project around. As part of the project, he would form a partnership with Kirill Pisarev, one of Russia’s largest housing developers and the co-founder of the development group PIK.
What Went Wrong with the Poklonnaya Complex?
Mukhtar Ablyazov was the first owner of the 0.7-hectare plot on Poklonnaya Street, where he planned to develop a business centre that would stretch over an area of close to 100,000 square metres. Unfortunately, development was halted after Ablyazov was accused of embezzling funds from BTA Bank and promptly left the country.
Breathing New Life into the Project
In March 2018, Kenes Rakishev, through Ledge LLC, which he controls, showed interest in amalgamating several long-term projects with the failed Poklonnaya Street project, his ultimate goal being to create a multi-use complex. These projects included a shopping and entertainment complex, an oceanarium on Poklonnaya Hill, and another structure that is strategically positioned in the Paveletsky railway station square and was bought by president of PIK, Sergei Gordeev. With an estimated construction cost of between 97,000 and 148,000 rubles per square metre, the multi-use complex is also to feature hotels, offices, a shopping centre and more.
Advantages of the Poklonnaya Street Complex
Rakishev and Pisarev are particularly interested in investing in the project because of several advantages that they can discern in its nature and location. Situated close to “Moscow City” and to several metro stations, the complex is in a good location where high footfall can be expected. The project has the potential to generate a fast return on investment. Equipped with innovative technologies, the complex is expected to be popular with retail chains and businesses requiring office space; with a need for infrastructure in the capital, a multi-use complex like this will be a great asset to Moscow.
The central involvement of Kenes Rakishev is in itself a very promising sign for the project’s future, since investors of his caliber typically invest only in projects that are likely to be necessary, useful and highly successful.