Russian Railways was unable to sell the Riga Station in Moscow, even at a second auction
The Russian transport monopoly RZD was unable to sell the Riga Station in Moscow during a second round of bidding, which was intended to help improve the company’s financial situation. Despite attempts to find a buyer, the asset was never sold, indicating difficulties in selling off parts of the state-owned company’s assets.
The repeat auction for the sale of Riga Station in Moscow did not take place due to a lack of bids, according to Russian media reports.
“By the deadline for submitting bids to participate in the bidding procedure for the lot, as established by the notice and auction documentation, no bids were submitted, and therefore the auction did not take place,” — according to an excerpt from the minutes of the auction results.
Russian Railways announced a repeat auction for the sale of Riga Station at the end of April. The first auction, announced in early March and scheduled for April 29, was also deemed to have failed to take place due to a lack of bids.
The lot included the 1901 station building with an area of 3,900 square meters, a 1929 non-residential building with an area of 3,900 square meters, as well as utilities. The buyer was also offered a long-term lease on a 13,700-square-meter land plot.
The starting price for the lot at both auctions was $55.6 million.
As a reminder, Russian Railways plans to lay off about 6,000 employees due to its deteriorating financial condition and a decline in freight volumes.
Earlier, the Russian government ordered Russian Railways (RZD) to put the 62-story Moscow Towers complex, located in the Moscow City business center, up for sale.
