NOGINSK, RUSSIA-X5 Retail Group, the largest retailer in the country in terms of sales, has agreed to lease 816,624 square feet of warehouse at Raven Russia Ltd.’s Noginsk-Eastern Logistics Park here. The 3.5-million-square-foot park connects to the Orekhovo-Zuevo railway.
About 350,000 square feet X5’s lease will be for cold storage. The landlord has agreed to spend about $16 million to create the cold storage facility, with occupation expected in November.
Glyn Hirsch, CEO of Raven, said this is the company’s second deal with X5. “This takes a large proportion of the remaining vacant warehouse space in Moscow out of an already under-supplied market. The annualized NOI on our existing portfolio is now more than $100 million,” Hirsch said in a statement.
The lease has a 10 year term, according to the landlord, and a blended warehouse rent of $141 per square meter. The park has about 1.5 million square feet completed, with about 85% leased to tenants such as Roto Frank, Sanitec, Alkon and Ontex. The landlord was founded in 2005 to invest in class A warehouse complexes in Russia to Russia tenants, with long-term hold plans.
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