Joint venture buys into Russian logistics

A consortium of Deutsche Bank, AIG Global Real Estate, and the Redwood Group has completed the acquisition of a massive logistics portfolio in the greater-Moscow region from private property company Capital Partners for an undisclosed amount. The portfolio encompasses more than 200,000 m² of existing space, as well as development sites for a further 800,000 m². The Redwood Group will provide asset and development management services to the joint venture, the three partners said in a joint press issued on Tuesday.

The portfolio includes the completed and fully operational Pushkino Logistics Park located along the M8 to the northwest of Moscow. The park is anchored by tenants such as DHL and Auchan. The majority of the development assets are to be built on a site located to the south of Moscow at the intersection of the Betonka Ring Road and the M4 near the Domodedovo International Airport.

Deutsche Bank and Aareal Bank are providing a senior investment loan to finance the acquisition. The transaction represents the second joint investment between Deutsche Bank and AIG Global Real Estate in the Russian Federation. Redwood identified the investment opportunity and presented it to Deutsche Bank and AIG.

'Through the provision of one million square meters of international standard distribution space, this joint venture will meet the tremendous demand of the Moscow market that is currently pushing Grade A distribution vacancy rates below 1%,' Stuart Gibson and Charles de Portes, co-founders of Redwood, said in a joint statement.