Adidas acquires 120,000 m2 warehouse in Moscow

Sports equipment manufacturer Adidas has acquired a 120,000 m2 warehouse in Moscow from Russian developer PNK Group.

Financial details were not disclosed but market sources have put the volume at between $70 mln and $100 mln (€62 mln to €89 mln).

JLL, which advised on the deal, said it represents the largest purchase of a warehouse by an end-user in the history of the Russian market.

The asset is located in the PNK-Chekhov II industrial park which is located near Chekhov, a town in the Moscow Region on the Simferopol highway, 49 km from MKAD, the Moscow ring road, and 20 km from the A107 highway.

The park totals 316,000 m2 of warehouse space, all of which was completed in 2012-2013 and is owned by the respective end-users, mostly Russian and international companies.

Adidas has had a presence in the PNK-Chekhov II industrial park since 2012 when it became the anchor tenant, taking 65,000 m2. The latest deal seesthe group purchase the entire building in order to further expand its business.

‘Our company has been on the Russian market for many years and in addition to being the market leader in the sporting goods industry, the Adidas Group is a leading retailer in Russia,’ said Martin Shankland, Managing Director of adidas Group CIS. ‘We see long-term potential in this market and therefore we continue to invest in best infrastructure. E-commerce continues to reshape the retail world and our investment in this distribution centre is part of a larger plan to accelerate the speed of service and deliver the ultimate consumer experience.’

Alexey Efimov, regional director at JLL for Russia & CIS, added: ‘Such an investment by a big Western player is good news for the entire real estate market in Russia. It proves that foreign companies feel optimistic about the region’s prospects and consider logistics property a stable and attractive sector even in a volatile economy.’