Auction House of the Russian Federation conducted sales within the bankruptcy procedure of LLC Rozoviy Sad, owner of the flower retail chain OptTSVETTorg.
The greenhouse complex growing roses, gerberas, and chrysanthemums in the northern part of Kaluga region has been offered up for auction.
The complex comprises the administrative and stock facilities with the overall acreage of 2.4 thousand square meters, five greenhouses with the acreage of 27.4 ha as well as the special equipment, needed for the production process.
The winner of the auction is LLC Kaluga Flower holding. The complex was sold at 8.3 million Euro.
“We are happy with the results of the auction. This has been a complicated lot for a narrow field investor. Flower business in Russia is not very developed: the contemporary technologies for flower growing are not present; most of the flowers are imported. However, with the change in the currency rate situation it has become profitable to grow flowers in the Russian Federation. Yet, the development of this sort of business requires a significant starting capital as the equipment and seeds are still imported from abroad”, noted Ms. Olga Zheludkova, the Head of the Department on Cooperation with the Distressed and Non-core Bank Assets.