MOSCOW—Morgan Stanley Real Estate Investing says one of its funds has bought the Metropolis shopping mall in what it called Russia's biggest commercial real estate deal.
Metropolis, which has a total size of 205,000 square meters, is one of Russia's most sizable shopping centers. It was acquired from Capital Partners, a real estate developer, for a price of $1.2 billion, several sources told Reuters.
Developed by Capital Partners, Metropolis opened in 2009 and it includes 82,000 square meters of fully enclosed retail space and 2,900 parking spaces. It is widely recognized as Russia's premier retail development with a favorable location in the north-west of the city, along a highway and next to the metro station Voykovskaya.
The shopping center is part of the institutional quality mixed-use complex Metropolis with 311,000 square meters of built area which, apart from the shopping center, includes three office buildings with a total GLA of approximately 80,000 meters.
“The acquisition of the Metropolis shopping center is the largest-ever transaction in the Russian commercial real estate market,” MSREI said in a statement. It did not disclose terms.
"The acquisition is consistent with our strategy of investing in high quality assets in Russia, a market that should continue to benefit from strong growth in consumer demand," Brian Niles, head of MSREI EMEA, said in the statement.
MSREI also owns Galeria Mall in the center of St Petersburg, Russia's second city. Last year, the Kommersant daily said that MSREI may buy Metropolis and a land plot near it for $1.9 billion, citing sources.
Click Reuters to read more.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
