Property investment company Sponda Plc has purchased the Bakhrushina House office building in downtown Moscow for US $47 million (approx. 37 million) from UFG Real Estate. The net initial yield for the property is over 9.5%.
The Bakhrushina House is located at Bakhrushina Street 32, at the intersection of Garden Ring and Bakhrushina Street. The office building close to the Paveletskaya metro station and the railway station has excellent connections to the Domodedovo International Airport and the southern neighborhoods of Moscow. The Red Square is approximately 2.5 km away from the office building.
The building, completed in 2002, has a total of approximately 4,000 m² of office and retail premises for rent. Many leaders in their fields of business as well as internationally renowned companies operate in this fully-rented property.
"For us, the Bakhrushina House is a good acquisition and an excellent addition to our property ownership in Moscow. The demand for high-quality office premises in downtown Moscow has remained strong and the rents have been on the increase. The positive development is believed to continue especially near the Garden Ring, where large limitations have been imposed on new construction," says Sirpa Sara-aho, Senior Vice President of Sponda.
The property transaction supports Sponda's growth in Russia in accordance with its strategy. Sponda's long-term goal is to have 10-20% of its balance sheet invested in Russia, in properties located in Moscow and St. Petersburg. Sponda has operated in the Russian market since 2006 and owns 10 properties in Russia after this transaction.