Support The Moscow Times!

Hines Nears $500 Million Deal on Metropolis Offices, Report Says

U.S. investment firm Hines is poised to purchase two office buildings in Moscow's Metropolis complex from private equity firm Capital Brothers for an estimated $500 million, Vedomosti reported, citing consultants close to the two parties.

The deal would come as a rare ray of hope to a market that has been static for months amid apprehensions over to the crisis in Ukraine and Russia's slowing economic growth. Consultancy Jones Lang LaSalle reported total purchases of only $1.4 billion in the first half of this year, a drop of almost 60 percent compared with the same period in 2013.

Metropolis is one of Moscow's largest multifunctional complexes, boasting more than 315,000 square meters of shops, recreational areas and office real estate. Morgan Stanley set the record for the largest commercial real estate acquisition ever made in Russia with its $1.2 billion purchase of the complex last year.

Investment fund Heitman bought one of the complex's three office buildings in 2011 for between $120 million and $125 million, with Hines now close to buying the remaining two. Those two buildings occupy a total of 82,000 square meters and provide 56,000 square meters of rental space.

The two buildings will likely from $450 million to $550 million in total, Stanislav Bibik, head of the capital market department at Colliers International, told Vedomosti.

Hines declined to comment on the reports, while Capital Brothers was unable to respond to Vedomosti's request for comment by the time of publication.

See also:

Crisis and New Supply Empty High-Class Moscow Offices

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more