A Selection of News and Topical Views

Cushman & Wakefield

The striking exterior of Nakhimovsky business center, renamed the iCube as part of its purchase by O1 Properties and currently being leased out.

O1 Properties Invests In iCube

iCube is the new name of  Nakhimovsky, 58 Business Center, which O1 is purchasing, subject to the center being fully leased out. The complex, close to  Profsoyuznaya metro station, covers 25,000 square meters over 11 floors and has underground parking for 288 cars. Dmitry Mints, Chairman of the Board of O1 Properties, said the acquisition conforms to the company's strategy of buying the most liquid high class objects of A and B Plus, the capitalization of which he expects to keep growing. The deal is reported to be worth $90 million to $110 million. The consultant was Cushman & Wakefield.

The building is currently being leased out, while the public areas are being redesigned. Office premises are ready for fitting out and tenants are expected to start occupying the building in the first quarter of 2014.

O1 Properties successfully concluded an issue of five year bonds with a 12 percent coupon and a three year put option in August, raising 6 billion rubles or the equivalent of about $180 million. The placement, managed by Otkritie Bank, NOMOS Bank, Raiffeisenbank and Sberbank CIB, was oversubscribed.

Metropolis Stake Changes Hands

Morgan Stanley sold half of the Metropolis shopping mall on Leningradskoe shosse to Hines CalPERS Russia Long Term Hold Fund,  formed by US real estate company Hines and the California Public Employees' Retirement System. Hines' country manager and managing director for Russia Lee Timmins did not disclose the price but Morgan Stanley had paid $1.2 billion for the entire property in February. Morgan Stanley bought the property from developer Capital Partners.

Multi-brand Hotel Complex Deal Signed

Accor will manage a hotel complex combining three different hotel brands near Kievsky railway station.

PATERO Development is building a 700-room hotel complex as part of a multifunction cent. Accor has signed a contract to manage ibis, with 190 rooms,  Mercure with 153, and Adagio with 94 rooms. The hotel area covers 35,000 square meters, with 142 parking spaces underground. Accor manages 5 hotels n Moscow, and 18 across Russia and the CIS. An aparthotel Adagio will open in Paveletskaya in November, as part of a complex  of three hotels, along with ibis and Mercure.

Largest Premium Industrial Complex Under Construction In Moscow Region

AT Real Estate has started building Moscow Region's largest Class A warehouse and industrial complex. Sofino Logistics Park to the south east of Moscow will comprise more than 840,000 square meters and cost about $600 million.

It is being developed on 137 hectares 32 kilometers from the Mkad circular highway, near Novoryazanskoye shosse (M5). The nearest airport is Domodedovo.  AT Real Estate expects to commission the first phase of 89,000 square meters in the second quarter of 2014.

Sofino is being built to the plans of British architects and will use seamless floor technology which is increasingly used in Europe though still fairly new to Russia. The buildings will meet FM Global and BREEAM standards. Colliers International is handling leasing and sales.

AT Real Estate perviously built the Bykovo logistics park near Zhukovsky, covering 420,000 square meters.  

Aerodom Set For Take Off

PSN group is on course to complete the business center Aerodom, on Leningradskoe Prospect, in the first quarter of 2014. The 36,000 square meter building over 13 floor is within walking distance of Aeroport and Dynamo metro stations.

It takes its name from the fact that it is built on an old airport terminal and the former Khodynka Airfield, which was built in 1910. In 1922 Russia's first international flight took off from the airport for Berlin.

 Marketed as an ergonomic work space, it joins a growing business district already occupied by companies like Kaspersky Lab, Mail.ru and BMW.

St. Petersburg Developer Builds Industrial Park In Tatarstan Economic Zone

By Guennadi Moukine

St. Petersburg developer A Plus Development has become the first private company to fund and build an industrial park at the Alabuga Special Economic Zone in Tatarstan.

Its subsidiary A Plus Alabuga will construct three facilities totaling 200,000 square meters, which will be partitioned into smaller warehouses and production units ― a turn key solution for companies looking for floor space but not yet ready to build their own.

Tatarstan President Rustam Minnikhanov said: "Our job is to create [attractive] conditions for new businesses, and we are thankful to and offer our support to the investor A Plus."

Businesses in the zone benefit from a 10-year tax holiday, reduced income tax, simplified customs procedures and inexpensive labor in the special economic zone and the communities around it. The average monthly wage in Alabuga is about $400, and staff are trained in advance, ready to work for new companies as soon as they open their doors.

David Izett, chief operations officer of real estate services firm Cushman & Wakefield, which is handling the project, said: "This is a place where positive political, economic, demographic and location factors combine; where an established domestic and international reputation and beneficial tax and customs regime, strong government support, affordable land, and established infrastructure combine to provide highly attractive opportunities for manufacturing and industrial companies."  

The first 50,000 square meters of the three-stage project, scheduled for completion in the first quarter of 2014, has already been leased out, with  the rest scheduled to be finished by 2017.

"As you can see, this is not a virtual idea with a photoshop presentation. It is a real project," said Timur Shagivaleyev, CEO of the Alabuga Special Economic Zone.

Special Economic Zone Alabuga was set up in an area originally planned as home to the largest tractor factory in the U.S.S.R., with an independent power plant, gas pipeline and rail link.

Alabuga belongs to the federal government, 51 percent, and Tatarstan Republic, 49 percent, who invested a total of $600 million. Currently it has 35 business residents who have committed $3 billion in investments, with $1.3 billion already in play.

Huaming Cultural And Business Hub To Bring "The Best From China" To Moscow

AECOM is to project manage a Chinese cultural and business hub for Moscow. The  CBC Park Huaming complex, will feature a 5 star hotel, two high-rise buildings of 32 and 45 storys, restaurants and a landscaped park with traditional Chinese pavilions and bridges. The development will cover a total of 8.2 ha.

The China Huaming International Investment Corporation (CHMIIC), includes the Chinese state oil and gas corporation CNPC, Chinese national food corporation COFCO and the Chinese industrial company the 'Great Wall'.

Department Store Chain Continues Its Rapid Expansion Into The Russian Market

The Russian partner of British retailer Debenhams is opening a flagship store in Moscow. It occupies three-storys at the Avia Park shopping center in north-western Moscow, at the junction of the Third Transport Ring and Leningradskoe shosse.

Debruss is leasing 8,400 square meters over three floors, through Jones Lang LaSalle as the leasing agent. It will be Debenhams' biggest store in Russia. Nick Hill, Managing Director of Debruss, said: "We believe that Avia Park is destined to become the shopping destination in Moscow, the hub for all the big international brands."

Debenhams opened its first shop in Russia last year, in Belaya Dacha shopping center after pulling out of the country in 2008.