Armenian investor buys one of the biggest offices in Russian St. Petersburg

YEREVAN, February 3. /ARKA/. Balchug Capital Fund founded by Armenia-born David Amaryan has bought Pulkovo Sky business center near Pulkovo airport in Russian St. Petersburg from Finnish EKE and Vicus companies, according to the Russian Unified State Register of Real Estate.

This is Balchug Capital's first real estate asset in Russia. "But hopefully not the last," Amaryan was quoted by RBC news outlet as saying.

Amaryan did not disclose the price of the deal, but noted that the purchase price was attractive. Deals to sell Russian assets of investors from the list of so-called 'unfriendly countries' since last December have been reviewed by a government commission, which approves them only if they are sold at a discount of at least 50% to the market price.

"This is a quality facility, the largest in St. Petersburg. There will always be demand for commercial real estate of this level," Amaryan said.

Pulkovo Sky business center consists of three 14-storey towers. Their total area is 76 thous. sq. m, rental area is 45 thous. sq. m. It is the largest A-class office building in St. Petersburg.

David Amaryan created Balchug Capital in 2010. He is the General Director of the company and supervises all of its investment activities. Balchug Capital manages over $250 million in assets.

Amaryan started his financial career in the U.S. and later worked in Moscow. Now he lives and works in Armenia, according to Balchug Capital.

Until 2009, David Amaryan worked for five years at Troika Dialogue company, which was founded by Ruben Vardanyan. Then, together with his brother Vardan Amaryan, he created the investment company Copperstone Capital. In 2015, Copperstone Capital won an award as the best Russian hedge fund. But in 2016, the fund lost 60% of its assets and was forced to pay a $10 million fine to the U.S. Securities and Exchange Commission (SEC) on charges of insider trading.

Amaryan insisted his innocence during the proceedings and changed the firm's name to Balchug Capital after the settlement. Last year, he actively invested in the Russian stock market, which fell after the outbreak of hostilities in Ukraine.

He bought shares in Rosneft, LUKOIL, Gazprom, Sberbank and other companies, the Wall Street Journal wrote. The Fund had also bought cheaper Russian shares in 2014, when foreign investors left the market after the annexation of Crimea. -0-