A Turkish and Finnish real estate developer have announced plans to invest a total of EUR 65 mln in the St Petersburg commercial property market. Helsinki-based Technopolis said it has been granted a new EUR 32 mln financing facility by the European Investment Bank to fund the construction of the Technopolis Pulkovo technology park in St Petersburg. The company plans to invest over EUR 45 mln in the first stage of the project, which is due for completion in the first half of 2010.

A Turkish and Finnish real estate developer have announced plans to invest a total of EUR 65 mln in the St Petersburg commercial property market. Helsinki-based Technopolis said it has been granted a new EUR 32 mln financing facility by the European Investment Bank to fund the construction of the Technopolis Pulkovo technology park in St Petersburg. The company plans to invest over EUR 45 mln in the first stage of the project, which is due for completion in the first half of 2010.

Phase 1 will offer over 24,000 m2 of commercial space, of which around 12% has so far been pre-let. 'The market situation in St Petersburg is still challenging, but the demand is reasonable and negotiations continue with numerous potential customers for a significant amount of space,' the company said in a statement. Technopolis, with total assets of EUR 720 mln, posted a profit of EUR 8 mln in the first quarter of the year, compared to a loss of EUR 8 mln in the same period in 2009.

Meanwhile, Turkey's Renaissance Development said it is spending $25.5 mln (EUR 20 mln) on the purchase of the Regent Hall retail and office complex at Vladimirsky prospect in St Petersburg. The seller is the Russian Mortgage Bank. The complex offers around 12,000 m2 of commercial space, of which around 8,500 m2 is let to a number of tenants including the Barrister book retail chain. The property, which offers opportunities for active asset management, was put on the market in the summer of 2008 with Colliers International managing the sale process.