YIT and BPT form Russian development partnership

Finnish international developer YIT and Copenhagen-based Baltic Property Trust (BPT) have signed a strategic partnership agreement for the Russian real estate market.

The two companies agreed to co-operate on identifying, developing and implementing commercial real estate projects in Moscow and the Moscow region.

YIT, represented by its affiliate YIT Properties, will provide technical due diligence and consultancy services in relation to potential projects and will be the first choice partner in the development of projects deemed attractive by both partners.

BPT will provide asset management services along with equity and financial solutions, through its existing Russian investment fund BPT Arista SICAV-SIF and other channels.

'The Russian real estate market is deeply distressed at the moment and it takes strong partnerships to overcome this challenge. We want to be part of the solution,' BPT founder Lars Ohnemus said.

'At the same time, the current situation also offers unique opportunities to secure the best locations and projects, and we know that together with a prominent player like YIT we can add significant value to the market thus securing future growth for our investors,' he added.

Both partners agree that the long-term potential of the Russian commercial real estate market is undiminished by the current crisis.

BPT is the largest commercial real estate investor in the Baltic Sea region. YIT is also active in Russia.