Eurohypo, Europe's leading specialist bank for real estate and public finance, has completed its first Russian property transaction: the US $130 million refinancing of the Pushkino Logistics Park (Class A), Moscow Region.
Markus Leininger, Eurohypoâs Head of Corporate Banking Central and Eastern Europe said: âThe Russian Real Estate Market is one of the most dynamic in Europe. We assume that the market will develop with an outstanding performance. This will include regional cities the foremost. We are very optimistic about the business opportunities in the Russian Federation and opened an office earlier this year in Moscow, headed by Vadim Ulchenko. The transaction with Capital Partners is for us the cornerstone of the Russian business.â
The transaction, which signifies Eurohypoâs entry to the Russian market, is the largest refinancing in Russian commercial real estate history.
The 210,000 sqm Pushkino Logistics Park, which is currently being developed on a 35 hectare plot 16 kilometers north-east of Moscow, and whose tenants include DHL, National Logistics Company and Relogix, is scheduled for completion in Q2 2006. It is jointly developed by Capital Partners and Lone Star Ventures.
Erkan Erkek, CEO of Capital Partners, said: âThe signing of this credit facility agreement with Eurohypo is an important milestone in the development of our project. With all the three buildings of Pushkino Logistics Park fully leased and refinancing in place, we believe that we have created a superior investment grade product for both Russian and foreign investors upon completion of the development in summer 2006.â
The developers were advised by Jones Lang LaSalle Capital Markets. Law firm White & Case acted as legal counsel to the borrower, while CMS Cameron McKenna acted in the same capacity for Eurohypo.
Commenting, James Corrigan, Associate Director Capital Markets at Jones Lang LaSalle, Russia, said: âJones Lang LaSalle is delighted to have led the arrangement of this landmark US $130 million senior debt refinancing facility. It is the largest institutional senior debt facility to be closed to date in the Russian commercial real estate market. The loan terms are more attractive for the borrower than any Russian or CIS banks could offer. Eurohypo is sending an encouraging message to the real estate investor universe â" foreign institutional senior debt has arrived in Russia.â
Eurohypo is Europeâs leading specialist bank for real estate and public finance. With total assets of almost 240 billion euros, Eurohypo is a subsidiary of Commerzbank, Germanyâs second largest banking group. It is also one of the top bond issuers on the capital markets globally.
Capital Partners is a privately-owned real estate company engaged in investment, development and management of landmark projects in Kazakhstan, Russia and Turkey. Capital Partnersâ rapid expansion in Russia is a direct result of the experience that it has gained as Kazakhstanâs leading commercial real estate developer. Capital Partnersâ other Moscow projects include the 332 room luxury Ritz-Carlton hotel on Tverskaya Street, scheduled to open in Q3 2006 and the 335,000 sqm Metropolis, a mixed-use office and retail development in north-west Moscow, scheduled for completion in Q4 2007. Today, Capital Partners manages investments with a projected end value, upon completion, of some US $2.3 billion. Capital Partners has offices in Almaty, Moscow and Istanbul.
Lone Star Ventures is a privately-owned boutique development partnership. The partnership was formed in October 2003 by experienced real estate and investment professionals to provide multiple services to the real estate sector. From early 2004 Lone Star Ventures has concentrated exclusively on the Pushkino Logistics Park development.
Jones Lang LaSalle is the worldâs leading real estate services and money management firm, operating across more than 100 markets around the globe. The company provides comprehensive integrated expertise, including management services, implementation