Alexei Mordashov’s Group won the auction for Shuiskaya Chupa, the former Karelia residence of Boris Yeltsin, a Kremlin official announced.
Severstal Group’s winning bid came in at 291 million rubles ($10.4 million), about 5 million rubles above the starting price. For his money Mordashov got ownership of a three-story hotel, several cottages and houses, a tennis court, sauna and garages. The 50-hectare plot of land where the property is located is available for long-term rental or purchase as well.
Two other unidentified companies participated in the bidding.
“This acquisition is aimed at the future development of the tourist business and, in particular, a new direction for the company — the development of inbound and domestic tourism in Russia,” Severstal Group said in a statement.
According to the Kremlin property department, the facility has not been used for many years, and to bring it up to a usable standard it will require serious additional investment.