Jones Lang LaSalle has advised the international developer Capital Partners on the forward sale of a 50% stake in the Metropolis Shopping Centre to Rodamco Europe N.V.
Metropolis is currently under construction and due to be completed in the second quarter of 2008. Located on the intersection of Leningradsky Prospect and the fourth ring road, the shopping center will provide 80,000 m² of retail provision. Likely to become one of the top center's in Moscow, there has been strong occupier interest and many international retailers are likely to make Metropolis their first entry into the Russian market. The Metropolis development also consists of 80,000 m² of office space which is not part of the transaction.
Purchased on a let turn key basis, this is the largest single asset transaction to date in Russia and Rodamco Europe's first acquisition in the country. Capital Partners will remain a 50% shareholder together with Rodamco Europe after completion.
Michael Lange, Chairman Jones Lang LaSalle Russia and CIS, said: "This is a truly landmark transaction combining one of Europe's leading shopping centre investors with an international development partner with considerable track record in Russia. This is the largest single asset transaction in Russia to date and Jones Lang LaSalle is delighted to have advised Capital Partners on this historic transaction."
Richard Bloxam, European Director Retail Capital Markets, said: "This is a very significant transaction as it is shows a rapidly maturing Russian retail investment market. We believe this transaction confirms Russia's status as a major destination for international capital targeting shopping centre. We anticipate significant increase in the number of shopping centre transactions in Russia in 2007. With prime shopping centre yields at historic lows across most of western and central Europe, Russia whilst witnessing yield compression still offer investors a considerably higher running yields."
Erkan Erkek, CEO Capital Partners, commented: "Following the successful refinancing of The Ritz Carlton, Moscow and Pushkino Logistics Park projects, we are proud to be at the cutting edge of Russian real estate investment market again. I am confident that this transaction will set an example for other large-scale international investors that are now looking at ways of entering this market."
Source: Jones Lang LaSalle