Norwegian investor Storm Real Estate and Swedish developer Ruric have agreed on a final settlement regarding the sale of the $20 mln (EUR 15 mln) Grifon House business centre in central St. Petersburg.

Norwegian investor Storm Real Estate and Swedish developer Ruric have agreed on a final settlement regarding the sale of the $20 mln (EUR 15 mln) Grifon House business centre in central St. Petersburg.

The final closing comes over 18 months after the signing of the sale agreement in April 2009 as a result of a dispute over the deal's obligations and conditions.

'This dispute has been going on for too long and we are glad that an amicable settlement agreement has now been concluded to the satisfaction of both parties,' Ruric CEO's Craig Anderson and the CIO of Storm Capital Management, Morten E. Astrup said in a joint statement.

As part of the agreement, Storm Real Estate has paid a lump sum of $3.75 mln to Ruric and has also agreed to undertake all outstanding warranties related to the Grifon House. The centre offers over 7,000 m2 of office space across four adjoined buildings in the Russian city, and is 100%-leased to research corporation Swiss PSI Cro, generating roughly $2.4 mln in yearly net operating income. Approximately 50% of the rented area expires in September 2011 and the remaining 50% expires in April 2015.

Storm Real Estate, which is managed by Storm Capital Management, currently owns two business centres in Russia; the Gas Field complex offering 16,000 m2 in Moscow and Grifon with 7,000 m2 of space in St. Petersburg.