Evans Randall, the privately held UK investment banking and private equity group, has acquired Silver City, a prime office complex in central Moscow as part of a renewed programme of prime property acquisitions in Europe.
Silver City is a 41,650 m² (leasable) complex of grade A offices completed in 2007, located on the Serebryannicheskaya embankment in Moscow's Garden Ring East business district. It is let to a number of large institutional tenants including Siberia Coal and Energy Company, Campbell's Soup, SeverEnergia (a subsdiary of Eni), Canon and Toyota Bank with average lease lengths approaching five years. Following the success of Evans Randall's first European Property Fund, which acquired more than 690 million of prime properties in Munich, Amsterdam and Brussels between 2006 and 2008, the group is again targeting prime office assets in major European cities.
An equity offering for Silver City is planned for the second quarter of 2010 targeting mainly private investors, including ultra high net worth individuals and family offices. Michael Evans, Chairman of Evans Randall, said: "Silver City is our first investment in Moscow and appeals because of the quality of its design and location and its strong tenant line-up. We believe the market for quality office space in Moscow is stabilising, with an increase in tenant take-up and the prospect of renewed rental growth.
This, coupled with the future impact of a dwindling development pipeline, gives well-let assets a good medium-term outlook".
Evans Randall was advised by its retained agent CB Richard Ellis which will also remain as facility manager of the complex. In the last five years Evans Randall has become a leading investor in landmark real estate assets in both the UK and Western Europe, acquiring a portfolio of more than 5 billion. Its track record in completing transactions quickly and effectively and its strong banking and equity investor relationships are fundamental to its ability to exploit opportunities offered in the current market.
Source: Evans Randall