California Courier Online, July 20, 2026

Tufenkian Trans Caucasus LLC acquired the property at 32 Pavstots Buzand St. in 2000. The government, two years later, decided to designate the site as “public domain” land that was included in the Hin Yerevan (Old Yerevan) project.

Construction of the controversial project, approved in 2005, only began in 2017. It remains unfinished. The long-stalled project seeks to “reconstruct” the architectural appearance of the Armenian capital of the late 19th – early 20th centuries given that little if anything remains on the site.  

Tufenkian, known as a purveyor of high-quality artisan rugs, has built several hotels in Armenia as part of his Tufenkian Heritage Hotels chain. He also founded the Tufenkian Foundation that provides aid to poor families in Armenia,

Tufenkian Trans Caucasus LLC (the company’s successor is now JFT LLC, whose shareholders are James Tufenkian (10%) and Tufenkian Holdings LLC (90%), in February 2023 applied to the Yerevan City Court of First Instance of General Jurisdiction against the Republic of Armenia (represented by the Ministry of Finance). 

Courts in Armenia Reject Tufenkian’s Claims

It requested confirmation of violations of the fundamental right of Tufenkian Trans Caucasus LLC,  as a result of the government’s decisions, actions and inaction, as well as to recover from the Republic of Armenia in favor of Tufenkian Trans Caucasus LLC an amount of AMD 2 million  as compensation for non-pecuniary damage caused by the violation of the company’s fundamental right to property and the mental suffering associated with it.

The court, on March 25, 2025, rejected the claim of Tufenkian Trans Caucasus LLC, and the company then appealed to Armenia’s Court of Appeal. The court approved the claim and sent the application to the lower court for a new review.

The company simultaneously appealed to the Administrative Court, contesting the government’s November 24, 2022 decision to extend the Old Yerevan project’s implementation period to 2023. Company attorney Mikael Danielyan argued that the extension was unsubstantiated, and its legality was therefore challenged.

After three  rounds of court proceedings were unsuccessful, Tufenkian Trans Caucasus LLC appealed to Armenia’s Constitutional Court in April 2025. The company challenged the Armenia’s Law On Alienation of Property for the Purpose of Ensuring the Overriding Interest of the Society, as well as the government’s decisions of 2018 and 2022 that extended the project’s deadlines.

Armenia’s Constitutional Court in December 2025 terminated the proceedings in this case, arguing that the company’s claims were groundless.

After exhausting its claims in Armenia’s courts, Tufenkian’s representatives applied to the ECHR on February 26, 2026. They requested recognition of violations of convention rights, in this case, the rights to property, fair trial, effective remedy and non-discrimination.

Attorney Danielyan notes that the company was ready and today doesn’t oppose handing over the property to the developer for reasonable compensation. 

Project developer Old City CJSC is owned by Vartan Sirmakes. Sirmakes, born in Istanbul, is Armenia’s former Honorary Consul in Marseille, the co-founder of the Swiss watch brand Frank Muller, and a major shareholder of ArmSwissBank and ArtsakhBank.

Since the developer did not initiate any negotiation process to alienate the property until 2022, Tufenkian decided to start legal proceedings.

In April 2023, the company finally received a written offer from the developer to sell the property for AMD 642 million (including the 15% surcharge and taxes prescribed by law).

The address at 32 Buzand St. in downtown Yerevan occupies an area of ​​693 square meters. Danielyan says that it is unlikely that it will be valued at less than $4,000 per square meter. In 2019, the company commissioned an appraisal from the licensed Expert Otsenka LLC, which valued the property at AMD 834 million. Adding to this the 15% surcharge and taxes prescribed by the Law “On Alienation of Property for the Purpose of Ensuring the Overriding Interests of the Society,” the compensation value becomes AMD 1.350 billion.

Differing Real Estate Appraisals

In February of this year, Tufenkian ordered a new appraisal of the site. The new conclusion of the Criminal Center for Judicial and Independent Expertise LLC established that the market value of the real estate at 32 Buzand Street as of February 20 is AMD 1. 775 billion. The 15% surcharge of the law on preferential interest is added to this, and the amount becomes AMD 1.239 billion. The value-added tax is AMD 247.825 million, and another AMD 233 million is profit tax. Thus, according to the new appraisal, the value of the property significantly differs from the developer’s proposal.

Old City CJSC representative Hayk Davtyan told Hetq that Tufenkian valued his property as a functioning complex, which is why the valuations are different. However, according to the appraisal provided to us, it was assessed as existing property with a plot of land and a fourth-class emergency building.

Davtyan also raised concerns about the legality of Tufenkian’s property acquisition. He argues that no compensation should be provided, since the previous owner, Nina Avagyan, had already received proper compensation when she transferred her property to the state. Later, Avagyan re-registered part of that area and sold it to Tufenkian’s company at a questionable price.

Attorney Danielyan considers this argument ridiculous, since Tufenkian’s company conducted the entire process legally: it acquired the property in question back in 2000 from the owner, is considered a bona fide acquirer, the ownership right was registered in the Cadastre, and by subsequent decisions of the Government, that area was recognized and included as a zone for sale.