Sistema-Hals buys Lubyanka Development

Russian developer Sistema-Hals Group has acquired full ownership of a major development project in Moscow from AFK Sistema.

The deal involved Sistema-Hals taking an 100% stake in the Lubyanka Development vehicle, which owns the Central Detsky Mir building at 5 Teatralny Proezd, Moscow. The property was closed for reconstruction in 2008.

Sistema-Hals said the acquisition was in line with the company's strategy of focusing on the development sector.

Following reconstruction, the gross building area is expected to increase from 57,500 m² to 74,000 m². The shopping space will be nearly doubled from 19,000 m² due to new internal space planning. The external existing dimensions, height, plot size and silhouette of the building will remain unchanged.

Sistema-Hals also sold its 58% stake of Mosdachtrest to AFK Sistema. Mosdachtrest was established in 1993 during the privatisation of the state enterprise established in 1938. The company owns approximately 200 hectares of land plots and about 800 summer homes in the Moscow Region.