The 'Golden Palace' Has Been Sold: Who is the Buyer and How Much Did They Pay?

The Minister of Territorial Administration and Infrastructure, Gnel Sanosyan, has announced on his Facebook page that the competition commission, established by his order, has summarized the results of the tender for the sale of the 'Golden Palace' hotel complex in Tsaghkadzor, Kotayk province.

The hotel was sold for 5 billion Armenian drams, with the buyer being 'Project Inter-Invest' LLC.

As of October 29, 2021, the estimated market value of the property was reported as follows: real estate (including the market value of the land) - 5,602,293,000 AMD, and the movable property within the buildings, totaling 3,257 units, was valued at 305,757,000 AMD. The minimum selling price for the property was set at 5 billion AMD, with the condition that the payment for the sales amount determined by the competition be paid evenly over five years based on the following schedule: the first payment is due one month after the results of the tender, which includes a prepayment of 250,000,000 AMD; the second payment is due by July 1, 2023; the third payment by July 1, 2024; the fourth payment by July 1, 2025; and the fifth payment by July 1, 2026.

Only one bid was submitted for the announced competition by 'Project Inter-Invest' LLC, which offered the stipulated 5.0 billion AMD for the purchase of the property, along with an additional investment program of 4.5 billion AMD over the next five years.

Following an examination of the bid by the competition commission, 'Project Inter-Invest' LLC was recognized as the winner of the competition announced for the sale of the real estate located at 34/1 Tandzaghbyur Street, Tsaghkadzor, Kotayk province of the Republic of Armenia.

It is noteworthy that in 2019 and 2020, the government had organized six auctions, yet all of them were unsuccessful due to a lack of bids.

Recall that on September 26, 2019, the Government of the Republic of Armenia decided to accept the 'Golden Palace' hotel in Tsaghkadzor, previously owned by the former head of the Customs Committee, Armen Avetisyan, as a donation.