Rodamco Europe N.V. announces the acquisition of 50% of the top quality pipeline project, Metropolis shopping center development in Moscow from the international developer and investor Capital Partners. The shopping center comprises approximately 80,000 m2 GLA. The investment value for the 50% ownership is approximately 200 million, reflecting a 9.6% net initial yield on Rodamco Europe's total investment cost.
The development of the Metropolis shopping center has recently started and is expected to be completed by the second quarter of 2008. The Metropolis development also consists of 80,000 m2 of office space which is not part of the transaction. In total the development will have 160,000 m2 of gross lettable area and 4,000 parking places, of which 3,000 are designated to the shopping center. Metropolis shopping center is purchased on a let turn key basis. Completion of the transaction will be after all operational and occupancy permits have been obtained and the center is fully operational. Completion of the transaction is expected in the first half of 2009.
Metropolis is located in the Voikovsky district, close to the city center and along the highly frequented Leningradskoye highway. The Voikovsky district is a densely populated area with the highest income per capita in the North of the city of Moscow. Metropolis has a direct catchment area of 800,000 inhabitants. It also fronts the fourth city ring-road which is currently in planning. Metropolis is located at the major public transportation hub Voikovskaya with an underground station, trams, fast trams, buses and trolley cars at its doorstep.
"After a thorough market review, we identified this unique high quality investment opportunity being developed by Capital Partners", says Maarten Hulshoff, CEO of Rodamco Europe. "Metropolis is expected to be one of the top centers in Moscow. The acquisition of this center on a let turn key basis offers Rodamco Europe the unique opportunity to enter the buoyant Moscow retail real estate market. This first investment of Rodamco Europe in Moscow is a very important milestone in our Central European early mover strategy into new markets."
Source: Rodamco Europe