A consortium led by Russia’s leading investment bank VTB Capital, including TPG Holdings and China Investment Corporation, international developer AIG/Lincoln, and Coalco Development have today announced the completion of their sale of White Gardens, a Class A office center in Moscow, to Millhouse LLC.
The deal was facilitated by Jones Lang LaSalle.
Located just off Tverskaya Street, Moscow’s central corridor, White Gardens comprises two office buildings totaling approximately 64,000 sq. m. of rentable area, and five underground levels of parking with 960 spaces. White Gardens is situated next door to White Square Office Center, which was sold by the same development team in late 2012 for a record sum of $1 billion.
Designed as a "green” office complex, with a focus on energy efficiency, environmentally friendly materials, and a construction process geared toward minimizing environmental impact, White Gardens is in the process of earning environmental certification from BREEAM, one of the world's leading environmental rating systems for office buildings.
Tim Demchenko, Global Head of Private Equity and Special Situations at VTB Capital, noted: “This deal completes a series of successful transactions in the real estate sector executed by the private equity team at VTB Capital that has already carried out the acquisition and subsequent sale of the Lesnaya Plaza and White Square business centers. Investment in premium commercial real estate assets located in Moscow and, in particular, the White Gardens office center, has helped to bring high returns for our bank. In the future, we will continue to consider participating in real estate projects in Russian and international markets.”
Brian Patterson, Managing Partner of AIG/Lincoln Europe, stated: “White Gardens is the product of a successful collaboration of Russian and international partners. White Gardens would never have been possible without the foresight, dedication, and expertise of our Russian partners Coalco, led by Vasily Anisimov, and VTB Capital’s team, led by Tim Demchenko.”
Vasily Emme, Coalco Development, said: “This deal marks the completion of the successful construction project, namely two Class A office centers White Square and White Gardens. The objective for Coalco Development was to create a neighborhood with a unique vibe that could prove that Moscow is an international business hub. These plans became reality thanks to our partnership with AIG/Lincoln and VTB Capital, and we are pleased to share this success with them.”
John Mann, Millhouse LLC, added: “White Gardens is a key addition to Millhouse’s property portfolio. We believe that the experience of the development team and the quality of building construction resulted in the creation of a first-class product that is in high demand in the market. Its investment attractiveness will only continue to grow over time.”
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