Moscow-based O1 Properties has sold 50% plus one share of JSC Bolshevik, which owns a 5.4 ha city landmark redevelopment plot.
The buyer is Tactics Group, a Russian developer, and O1 Properties, which owns and manages a portfolio of Moscow office properties, has an option to buy the completed redevelopment after it has been rented out.
The land contains a former confectionery plant, Bolshevik, at Leningradsky Prospekt 15.
O1 Properties will remain involved in the redevelopment of the site and the implementation of leasing activities.
Bolshevik will be converted into a cultural and business centre by 2016. It will offer an open air area that links Leningradsky Prospekt with Skakovaya Street as well as a museum of modern art, restaurants, a café, shops and loft-style offices.
Dmitry Mints, chairman of O1 Properties, said: “Bolshevik is a good asset with great potential. However, our current strategy is to focus on investing in already completed assets with stable income streams. By taking this step, we have passed on the development risks to our partner company, Tactics Group, which has vast experience in the implementation of similar projects. O1 Properties will continue to carry out marketing and office leasing activities at Bolshevik.”
Pavel Shishkin, major shareholder of Tactics Group, added: “For us, this deal represents a logical next step in the development of our company because it fits our expertise in property development, consulting and real estate operations in the commercial property market.
“In addition, Bolshevik represents much more to me personally than just an investment in an appealing asset. It is one of Moscow’s recognisable buildings with rich heritage and history. We will put all our efforts into turning it into one of the city’s best sights. As for the commercial aspect, Bolshevik has great investment potential, and the O1 Properties team will help us to realise this value.”
