Building in Yerevan to be removed from privatization list

ArmInfo.  The building at 28 Nalbandyan Street in Yerevan will be removed from the list of objects subject to privatization with the possibility of its subsequent sale.  The RA Government approved amendments to the law "On the program for  the privatization of state property objects for 2017-2020" at its  meeting on July 10.

As noted in the justification for the draft decision, in order to  effectively manage state property, the Cabinet of Ministers had  previously decided to create Republic Plaza OJSC with 100% state  participation. The building occupies an area of 7809.9 square meters,  and the land it occupies is 0.262 hectares. The establishment of the  Company is the first stage of the pilot program of the policy adopted  by the RA Government on the strategy of reforms in the field of state  property management, and the next stage envisages the inclusion of  the Company in the privatization program. This will increase the  attractiveness of state assets through the development of preliminary  business plans, creating the basis for the development of the  securities market through the privatization of company shares through  the stock exchange.

The Government of the Republic of Armenia, by its decision, assigns  the above-mentioned building to the authorized capital of the OJSC as  its contribution. The main objective of the presented document is to  support investment programs aimed at increasing the attractiveness of  state property. The company has the right to carry out any activity  not prohibited by law. The company may carry out its activities only  if it has a license or special permit. The adoption of the draft law  is conditioned by ensuring the requirements of the Action Plan for  reforming the state property management system. The strategy of  reforms in the field of state property management envisages the  application of new tools in the field of organization and management  of real estate and shares considered state property, in particular,  by creating joint-stock companies based on property subject to  alienation and having investment attractiveness, the application of  new approaches in the sale of shares. The application of the new set  of tools envisages the creation of new joint-stock companies with  100% state participation by investing in one or several real estate  objects with high added value (at least one billion drams).

The authorized bodies of the country had to carry out the work on the  acceptance and transfer of territories, and the contracts for the  territories occupied on the basis of gratuitous use had to be  terminated. The above- mentioned works were fully completed within  the specified period - until August 17, 2024. After the completion of  the works, the real estate was registered by the Cadastre Committee  of the Republic of Armenia in the name of Republic Plaza OJSC.

The program envisages an analysis of the situation, which should  serve as a solid basis for further steps, including conceptual  design, development of a proposal for financing and cooperation,  negotiations with potential investors, development and implementation  of a joint investment project, etc. In his work, the consultant may  consider the inclusion of neighboring buildings in the project for  possible partnership or their acquisition. In any case, other  territories that are currently not under the company's jurisdiction  are also considered as options, so the final conclusion should  include not only the possibility of analyzing and concluding the  property at the specified address, but also the possibility of  including properties at nearby addresses with appropriate analysis  and justification. The final result should be presented to donors,  investors and the public. Given the importance of the project, the  above analysis is planned to be carried out by a specialized  organization with sufficient professional experience in developing  business plans and business models.