JLL advises on first retail investment transaction this year in Russia

Jones Lang LaSalle announced on Tuesday that it advised London & Regional Properties on the sale of two shopping centres in Moscow to Finnish property group Sponda earlier this month.

Sponda purchased the shopping centres, Sun Paradise I and Sun Paradise II, in Moscow for a total of approximately $109mln from LR Russia. Sun Paradise I, built in 2004, was purchased for approximately $66mln. The shopping centre, which provides food, domestic appliance and cosmetics services, is located in Solntsevo, in Moscow, close to outer ring road at Borovskoe shosse 6. The shopping centre has 9,000 m² of leasable retail premises and parking for 242 cars.

Sun Paradise II shopping centre, which focuses on consumer goods and food services, was purchased for approximately $43mln. Completed in 2005, the shopping centre is located in the centre of Ramenskoe in the Moscow region, at Vokzalnaya St 4. The shopping centre provides 6,500 m² of leasable retail premises and parking facilities for 120 cars.

Both shopping centres are fully leased.

James Corrigan, director and head of Retail Capital Markets Russia at Jones Lang LaSalle said: 'We are delighted to have advised London & Regional Properties on the first institutional retail investment transaction to successfully close in Russia this year. This transaction is significant not only because it is the first of the year, but because it is the first transaction where a foreign investor, London & Regional, has acquired a retail property and is now selling to another foreign investor, Sponda plc. This is evidence that the investment market in Russia is maturing.'