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. Last Updated: 07/27/2016

Alarko to Lease Central Moscow Office Space

Turkish construction giant Alarko said Wednesday it is offering 1,500 square meters of prime office space for lease at the 16 Tverskaya Ulitsa shopping and office center beside Pushkin Square.

The space, with an asking price of $400-plus expenses per square meter, is being handed to Alarko for five years by the Uneximbank-controlled 16 Tverskaya Ulitsa management company in payment for its million-dollar debt to the constructor, Alarko regional director Engin Colpan said.

"To solve this [debt] problem they offered to exchange the premises for the money," Colpan said.

Alarko won a $38 million tender to build the 40,000-square-meter plaza in 1994. But the project lost its financing in mid-1995 when developer Microdin went bankrupt.

Alarko pushed ahead with construction at the request of City Hall, finishing the nine-story center in December 1995.

Uneximbank later pledged to pay back the debt to Alarko after winning an eight-year lease on the center from City Hall. However, the bank only managed to pay off all but $3 million plus interest of the debt before being dealt the body blow of the August 1998 financial crisis, Colpan said.

With the support of City Hall officials, Alarko is now wrapping up the agreement to swap the space for the debt and will sign a final deal "in a few days," Colpan said.