Morgan Stanley Real Estate Investing (MSREI) has confirmed the acquisition of the huge Metropolis shopping centre in Moscow in what it described as the largest-ever transaction in the Russian commercial real estate market.
Morgan Stanley Real Estate Investing (MSREI) has confirmed the acquisition of the huge Metropolis shopping centre in Moscow in what it described as the largest-ever transaction in the Russian commercial real estate market.
A fund managed by MSREI purchased the 205,000-m2 Metropolis Shopping and Entertainment Mall from Kazakh developer Capital Partners.
Terms of the transaction were not disclosed, but the deal is believed to be worth around $1.2 bn (€1 bn).
MSREI said in a statement that it is the largest-ever transaction in the Russian commercial real estate market.
The acquisition follows on from Morgan Stanley Real Estate Fund VII’s $1.1 bn purchase of the Galeria mall in St. Petersburg in the first quarter of last year.
MSREI and Capital Partners have been in negotiations for months regarding the Metropolis mall, which is part of the larger Metropolis mixed-use complex.
Developed by Capital Partners, Metropolis opened in 2009 and provides 82,000 m2 of fully enclosed retail accommodation and 2,900 parking spaces. It is widely recognized as Russia's premier retail development with a good location in the north-west of the city, along the Leningradskiy highway and next to the metro station Voykovskaya.
The shopping centre is part of the institutional quality mixed-use complex Metropolis with 311,000 m2 of gross built area which, apart from the shopping centre, includes three office buildings with a total GLA of 80,000 m2.
'The acquisition is consistent with our strategy of investing in high quality assets in Russia, a market that should continue to benefit from strong growth in consumer demand,’ said Brian Niles, Head of MSREI EMEA. ‘We look forward to managing the assets as we seek to deliver additional value to our investors,’ Niles added.
Metropolis is one of the most visited shopping centres in Moscow with 55,000 customers per day in 2012. The complex is fully leased and has a waiting list for retailers wanting to rent space. Major tenants include food hypermarket Karusel and department store Stockmann, along with a large number of international retailers including Michael Kors, H&M, GAP, River Island, New Look, DKNY, Bebe, Jaeger, Uterque, Imaginarium, and Zara.
The centre also has a multi-screen cinema operated by Cinema Park Deluxe and a bowling alley. Capital Partners was advised by Jones Lang LaSalle.
