$110M Center Going Up Near Kursky

For MTAnalysts said that the intersection Delin has agreed to build would help overcome key transportation problems.
With the area around Paveletsky Station already saturated with the city's largest concentration of Class A offices and with availability of spaces at Moskva-City dwindling, developers are increasingly looking for new sites for modern office construction.

One such location is the area around Kursky Station in east-central Moscow, which is seeing more office developments such as the $110 million project started on Serebryanicheskaya Naberezhnaya earlier this month.

The 59,000-square-meter business center, tentatively called Silver City, will consist of two buildings connected by a glass atrium and be built by Delin Development, a real estate subsidiary of the Neftyanoi Group of companies.

Neftyanoi's holdings include petrochemical and energy assets, as well the Mosinzhstroi engineering giant and Neftyanoi Bank. The group did not disclose its financial figures, but Neftyanoi Bank held 5.2 billion rubles ($182 million) in assets as of Jan. 1.

The Class A office center, designed by American architectural firm NBBJ -- whose previous work in Russia includes the Krylatsky Hills office park in Moscow's western Krylatskoye neighborhood -- is scheduled for completion in late 2006, said Ersin Demirdelen, Delin's general director. The new complex will be located behind Neftyanoi Group's 20,000-square-meter headquarters on Ulitsa Zemlyanoi Val, on the banks of the Yauza River.

As part of the investment contract with the city, Delin will build a large intersection on the part of the Garden Ring Road adjacent to the project, which will ease access to the business center significantly, Demirdelen said.

Demirdelen estimated that the entire project would cost about $110 million.

In addition to the business center, Delin is also planning an 11,500-square-meter elite residential project, which will be located two doors down from the office complex. Work on the project has yet to begin. It is expected to be completed in late 2007, Demirdelen said.

Silver City will become the second large Class A business center to be built near Kursky Station. In April, the Tema company announced its plans to build the $130 million, 63,500-square-meter Citydel office and retail complex, scheduled for a mid-2007 opening. It will be located on Ulitsa Zemlyanoi Val.

Darrell Stanaford, managing director at Noble Gibbons, Silver City's marketing agent, said the development was bound to become one of Moscow's prime office locations.

"It is the development team that sets this project apart. Ersin [Demirdelen] is one of the most experienced developers on the market," he said.

Prior to joining Delin, Demirdelen had spent over a decade working for Turkish builder Enka, one of Moscow's largest developers, first as a deputy general director and then as general director of its Russian subsidiary, Mosenka.

Stanaford said that the flow of traffic was one of the site's biggest problems,but stressed that the intersection to be built by Delin would help alleviate potential traffic jams.

Sergei Riabokobylko, managing director at Cushman & Wakefield Stiles & Riabokobylko, said that this part of central Moscow had not seen much real estate development, largely due to lack of good sites and transportation problems.

The site on Serebryanicheskaya Naberezhnaya is difficult to get to, but once the new intersection on the Garden Ring is completed, its attractiveness will increase greatly, he said.

"Location right on the intersection, when a business center is tied to transport flows, is textbook," he said.