EXPO REAL: Morgan Stanley Real Estate Funds is in talks to buy the Galleria shopping centre in St Petersburg for $1bn (£650m) – a 8.7% yield.
The circa 2m sq ft mall is being sold by Meridian.
The deal will be the largest single asset deal to have taken place in Europe in two years.
Jones Lang LaSalle, which advised on the transaction, declined to comment.
Elsewhere in Russia, global property fund manager Heitman has bought the circa 800,000 sq ft Metropolis business park in Moscow for $120m – a 9% yield – from Capital Partners. Procter & Gamble is the main tenant at the park, which has scope for a further 400,000 sq ft of space.
Hines Global REIT is also close to buying the 80,000 sq ft Gogolevsky business centre, also in Moscow, from Fleming Family Fund for around $100m.
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