Property investment company Russian Invest has purchased a 55% share from SRV in the Okhta Mall shopping center project, which is phase I of the Septem City project located in St. Petersburg. Okhta Mall is Russia Invest’s first investment, and the size of the company’s investment in the project will be approximately €50 million.
Sponda’s holding in Russia Invest, which invests in property development projects in Russia, is 27%. Sponda’s share of the investment in the Okhta Mall shopping center project is approximately €14 million.
The total value of the shopping center investment is approximately €250 million. Construction is estimated to begin in late autumn 2013, after the final building permit is received. SRV will be responsible for the development, planning, leasing and construction of the shopping center. The shopping center will open in spring 2016.
The Okhta Mall shopping center project comprises a total area of some 144,000 m², of which approximately 75,000 m² will be leasable floor area. The shopping center will have four floors above ground and two underground levels for a hypermarket and parking space.
The Okhta Mall site is located in the immediate vicinity of St. Petersburg’s central business district, next to Okhta River. It will be the first shopping center with a hypermarket near the central business district. Preliminary leases have been signed for over 25% of the total leasable area. The target annual rental income for the shopping center is approximately €33 million.
The shareholders of Russia Invest, a property investment company established in September 2011, are Ilmarinen, Sponda and SRV with a share of 27% each, Etera with a share of 13% and Onvest with a share of 6%. The company’s investment capacity is €95.5 million, of which slightly over half is now being invested in the Okhta Mall shopping center project.
Source: Sponda plc