Leasing properties sold at the Auction House of the Russian Federation

22 June 2021
TransFin-M and the Auction House of the Russian Federation (AHR) have launched a joint program, under which commercial estates sold at AHR auctions can be purchased under the financial lease mechanism.

In order to purchase an asset, the client should sel ect a facility worth at least 200 million rubles on the AHR website and apply to Transfin-M with a request for leasing. The AHR-listed properties have been pre-audited by TransFin-M and approved for use in lease arrangements. The lease registration procedure will be accelerated for these properties. Indicative financing terms are based on the initial tender price, the condition of the asset and its potential for commercial use.

Once the financing terms are approved, the lessor and the lessee sign a lease agreement.After receiving a confirmation fr om TransFin-M, the client advances about 20% of the lot price under the lease agreement. The leasing company pays the remainder of the amount. The client then repays the financing amount in equal instalments over the lease term, and once the entire amount has been repaid, he/she acquires full title to the estate.

Alexey Taycher, Chairman of the Board of Directors of TransFin-M PC, comments:

TransFin-M is one of the few leasing companies operating in the commercial real estate market and seeking to expand its portfolio in this promising business segment. I am confident that our services provided in cooperation with the AHRF will be in great demand, because the leasing mechanism offers flexible and comfortable conditions for asset acquisitions, compared to other financial instruments. For example, monthly payments under the lease plan will be about the same as rent payments, but the customer will own the facility by the end of the lease term.

Konstantin Raev, COO (Operating Director) of the Auction House of the Russian Federation:

We are presenting a unique service to the market – purchasing real estate at AHRF auctions using the lease mechanism, which allows the buyers to purchase assets without too much impact on their core business operations. TransFin-M is our first partner in this project. The service will definitely gain popularity among the buyers of state and corporate property, which the AHRF specializes in, as the customer gets attractive financing terms from the leasing company without having to allocate a hefty amount of money they would otherwise need to purchase the asset.

You may be particularly interested in the program if you intend to buy office estate supported by steady rental revenue stream, which can cover up to 80% of the monthly lease costs.

  • TransFin-M has more than 16 years track record in the financial services market, with unparalleled expertise and invariably high ratings.

  • The client pays for the estate purchased in arrears, over an extended term, with the terms being similar to renting the same space.

  • The audit is focused on the real estate property, not on the client’s financial status.

Leasing properties sold at the Auction House of the Russian Federation
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