Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

MOSCOW-The Russian property developer Kopernik Group has signed over the 37,800-square-meter Severnoe Sianie business center and the Na Krasnoy Presne office complex in Moscow to the privately-held Alfa-Bank as credit redemption. Alfa plans to sell the properties by public tender, according to a new market report issued by research group GVA Sawyer.

Kopernik is the latest Russian builder forced to part with assets after struggling to meet debt payments. Capital Group also reportedly failed to repay a $400 million credit facility to Russia's Sberbank, and is reported to have offered its 288,680 square meters Moscow-City business centre project as security. The development consists of over 101,000 square meters of apartments and 72,000 square meters of office premises.

According to GVA Sawyer, the office property market in Moscow is expected to remain challenging next year, though it should start to stabilise. "In the near term the current downtrend is expected to continue because of the complicated economic situation," it said. Vacancy rates currently exceed 20%, with new business centres delivered in the third quarter remaining 60% to 80% tenantless. Rent levels have dropped by 40% to 50% over the past 12 months, and GVA Sawyer expects property values to drop by another 5% to 10% this year, after plunging 35% to 50% over the past 12 months.