Orco Property Group has carried out what is probably its largest deal in Russia to date by agreeing to forward purchase a major shopping centre development in an upmarket district of western Moscow.
Orco Property Group has carried out what is probably its largest deal in Russia to date by agreeing to forward purchase a major shopping centre development in an upmarket district of western Moscow.
It is understood that the transaction volume will be in the region of $300mln (EUR 190mln), reflecting an initial yield comparable to that of other shopping centre deals at the time Orco began negotiating the acquisition from Rubin Development some months ago.
In a statement on Wednesday, Orco said the shopping centre, which was formerly known as Na Bagrationovskom, has been renamed Filion. The site comprises 3.4 hectares and has a gross buildable area of 122,367 m2, including 39,402 m2 of parking space. The asset will provide 54,477 m2 of leasable space over three aboveground floors and one basement level.
Orco said that the shopping centre is 98% let to 144 tenants, with 90% of the income secured by international and major national brands, nine months before opening. Rubin Development is has begun the construction process and the opening is scheduled for the first quarter of 2009.
