VTB Capital and O1 Properties announce completion of Lesnaya Plaza sale.

VTB Capital and O1 Properties have announced the completion of the sale of Lesnaya Plaza, an A Class business centre with a total floor space of 49 520 sq.m.

Jones Lang LaSalle acted as consultants for the deal, and legal support was provided by Akin Gump Strauss Hauer & Feld LLP for O1 Properties and by Clifford Chance for VTB Capital.

The Lesnaya Plaza Business Centre was acquired by VTB Capital in 2010, as a co-investor with one of the largest global investment funds. In the same year, VTB Capital completed the re-branding of the business centre, for which it engaged one of the internationally accepted leaders in the field of real estate management. VTB Capital has also taken a number of steps to renovate the building and make it more effective.

Commenting on the deal, Tim Demchenko, Head of Private Equity and Special Situations at VTB Capital, stated: “Today, the Lesnaya Plaza business centre is being leased to leading Russian and international companies. After making a number of improvements, and given the current return of institutional investors to the Moscow commercial property market, we have decided to sell the business centre. The highly competitive tender was won by O1 Properties Limited. We are very pleased to do business with a company that has such significant experience in the Russian real estate market, demonstrates dynamic growth and possesses impeccable reputation”.

Dmitry Mints, Chairman of the O1 Properties Management Board, emphasized the great potential of the property: “Our decision to invest in the Lesnaya Plaza business centre was determined by our desire to be present in one of the most developed and respectable business areas in Moscow and by the moderate letting rates of the building . We see here an opportunity to significantly increase the investment value of this asset with relatively insignificant redevelopment”.

About Business-Centre Lesnaya Plaza

The A Class business centre “Lesnaya Plaza” is situated in one of the most important business areas of Moscow, in close proximity of the Belorusskaya Metro Station, the 1-st Tverskaya-Yamskaya Street, Butyrsky Val and Leningradsky Prospekt.

The rental space of the 14 storey building is 39,634 sq.m. The business centre was put into operation in 2005. Bacardi, Weatherford, LG and others are among the current tenants.

About VTB Capital

VTB Capital, the Investment Business of VTB Group, is one of the three strategic business arms of VTB Group, along with the corporate and retail businesses. Since its foundation in 2008, VTB Capital has taken part in 235 ECM and DCM deals, which were instrumental in attracting more than USD 96,3bn worth of investments to Russia and CIS.

VTB Capital offers a full range of investment banking products and services to Russian and international clients, focusing on arranging operations in the debt, equity, global commodities markets, developing investment and asset management, advising clients on M&A and ECM deals in Russia and abroad. VTB Capital operates in Moscow, London, Singapore, Dubai, Hong Kong, New York, Paris and Vienna, with headquarters in Moscow.

VTB Capital holds top positions in the debt and equity capital markets in Russia and CIS according to the league tables for 2011 by Dealogic and Bloomberg. In 2011 VTB Capital research team was ranked #1 in Thomson Reuters Extel Survey and Institutional Investor All-Russia Investor Survey.

This press-release does not constitute an offer to the public or an advertisement of securities in the Russian Federation, is not an offer or an invitation to make offers, to purchase securities in the Russian Federation and must not be passed on to third parties or otherwise made publicly available in the Russian Federation.

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  1. VTB Capital and O1 Properties announce completion of Lesnaya Plaza sale. 10 January 2012 Download PDF