Sergei Bakeshin has estimated for Novy Prospect the chances of invalidating the sale of a land plot on Krestovsky Island to Alexander Shestakov

Alfa Faberge, a construction company, which sold a land plot for the construction of a luxury house on Krestovsky Island to billionaire Alexander Shestakov, is seeking to have the deal ruled invalid. The developer cites the entrepreneur’s breach of agreements, according to which Alfa Faberge was to remain in the project in the role of a fee-developer, while in fact the asset was included in Kompass closed-end real estate unit investment fund under the management of Dokhod managing company. In April, the Commercial Court of St Petersburg and the Leningrad Region dismissed Alfa Faberge’s claims, while pointing to the possibility of a claim to “compel the buyer” to enter into a trust management agreement or to terminate the agreement due to the counterparty’s failure to perform its counter obligations.

According to Sergei Bakeshin, Senior Associate, Head of Dispute Resolution & Insolvency practice at Maxima Legal, the probability of changing the decision of the court is low. “The court did not find any fraud in what was going on, which would have made it possible to invalidate the deal. The plaintiff not only did not bother to elaborate and formalise the terms of the transaction and his agreements with the buyer, but he may have chosen the wrong way to protect his rights,” the expert explained specifically to Novy Prospect online edition.

To read the full article (in Russian) please visit Novy Prospect website >>>