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. Last Updated: 07/27/2016

Investment Fund Buys Samsung HQ for $25M

VedomostiSamsung sold the Bolshoi Gnezdnikovsky business center for a reported $25 million.
South Korea's Samsung Group has sold its Moscow business center to Capital Investments LLP, an international mutual fund, in one of the largest real estate deals in the past year.

Neither side revealed the sale price for the Bolshoi Gnezdnikovsky Pereulok building, but a source familiar with the deal said Capital Investments paid about $25 million. Colliers International said it brokered the sale in December.

The Samsung Engineering & Construction subsidiary built the eight-story business center in 1997. Its occupancy rates have been higher than the market average. Of 11,591 square meters of class A office space, 98 percent were leased in December. The tenants include Sumsung's own Russia representative office, Banque National de Paris-Paribas, Bank of America, Banco Bilbao de Viscaya Argentaria, Rolls Royce International, Millicom International Cellular, Agribusiness and Dandy Distribution.

Samsung sold the business center because it wants to focus on development projects, said Yelena Tikhonova, deputy marketing director of Samsung Engineering & Construction. "Taking care of real estate does not fit our profile," she said.

This is not the first time Samsung has sold a business center in Moscow. At the end of 2000, the company sold a 5,833-square-meter office building to Interros on Bolshaya Yakimanka.

Russian law forbids mutual funds from buying real estate. Capital Investments, therefore, did not actually buy the building. Instead, it bought a 100 percent stake in a specially created company that owns the building.