Heitman just announced this week the acquisition of Office Building 2 of Metropolis, a Class A office building in Moscow, Russia. The building, part of the Metropolis Complex, which contains three office buildings and one of the most successful retail and shopping centers in Moscow, is the first acquisition on behalf of Heitman Property Partners IV in Russia.
Commenting on the acquisition, Gordon Black, Senior Managing Director of Heitman's European private real estate equity group said, "We are very pleased to announce the first property acquisition for Heitman in Russia. With its high quality construction and tenant roster, superb location and appealing amenities, the property easily meets the stringent investment criteria we seek for the Heitman European Property Partners IV portfolio. Moscow is an increasingly dynamic economy and Office Building 2 is an outstanding property by which to make our first footprint in this market."
Completed in late 2008, the eleven-story Office Building 2 of Metropolis was developed by and purchased from Capital Partners. With a total net rentable area of 22,495 SqM the property is fully leased to multinational corporate tenants. The property's appeal is enhanced by its location in Voykovsky, part of the office corridor connecting Moscow city centre with Sheremtyevo Airport. A rapidly developing business sub-market, Voykovsky is just ten minutes away from central Moscow by Metro, which is located adjacent to Metropolis.
Gareth Jones, Chief Investment Officer of Capital Partners added, "We are delighted to have concluded this landmark deal with Heitman which demonstrates not only the continued robust nature of the Moscow real estate market but also the increasing appetite of institutional investors for prime property in Moscow."
Concurred Rob Reiskin, Heitman's Co-Head of European private real estate equity, "Heitman has closely tracked the development of the Russian real estate market for several years and we are excited about what we are seeing now in Moscow. With today's supply/demand statistics, pricing and growth prospects, we felt it was the right asset to provide HEPP IV investors exposure to this promising market."
With €505 million in equity commitments, HEPP IV is the fourth and latest in a series of European value-added property investment funds managed by Heitman, which has been active in the region since 1995. Heitman's European investments span across 16 countries with approximately $4 billion currently under management. A leading investor in the region, Heitman has over 40 employees across four offices in Europe - Moscow, London, Luxembourg and Warsaw.
Heitman, founded in 1966 and headquartered in Chicago, manages over $22 billion in assets invested directly and indirectly in real estate in North America, Europe and Asia. The firm's clients include international institutions, pension plans, endowments and foundations, and private wealth and multi-management firms.
Capital Partners, founded in 2001, is a market leading real estate investment and development company focusing on pioneering projects in the world's most exciting emerging markets. Capital Partners has offices in Turkey, Kazakhstan, Russia and Ukraine.