No more bets
Yesterday Krasnodar region`s Department of Investments was expected to survey the results of the third tender for the right to lease land plots in Kuban`s part of Azov City gaming zone. However, a source in Department of Investments said that the tender had been called off. The reasons were not explained, no official comments were given.
Somehow there is no demand for smaller plots in Kuban`s part of the zone. Only two of them were leased at the first tender (on July 4th) by Kazan`s Royal Time LLC. Another two turned to be out of play. The regional authorities made an attempt to sell them and two similar ones last Monday. But there was no demand for them again.
Another five land plots, 2 hectares each, failed to get investors today. On the contrary, Rostov region, in the very first tender, attracted investors for all 16 tendered plots, 1.5 hectares each. However, the total amount of announced investments (about 2 billion rubles) yields to the only Kuban land plot almost two and a half times.
The Director of Regional Gambling Operators` Association in the Southern Federal District, Nickolay Oganezov believes that smaller land plots are more suitable to investors now. `The market keeps hoping that the ban of gambling in residential areas and relocation of the business to gaming zones will be suspended (as of now, it will come into effect on July 1st, 2009), and the smaller plots let them minimize risks.
The President of Orbita LLC, a gambling operator from Saint Petersburg, Michail Bartnik thinks that the smaller plots are unattractive for the business due to very tough requirements set by the regional authorities – to put facilities into operation by July 1st, 2009. A grave fine (dozens thousand rubles per day – the “Commersant”) will be imposed in case of failure.
The spokesman of Department of Investments said, preferring to stay anonymous, that no more tenders are planned so far, and Kuban`s authorities will concentrate on work with the investors already involved. Meanwhile nine land plots, 2 hectares each, will remain unleased.
the “Commersant” materials