Orrick Advises on Top Three Russian Real Estate Transactions

July.30.2012

Orrick provided counsel on the top three largest real estate deals in Russia during the first half of 2012, according to the CBRE Marketview H1 report. These three deals place Orrick at the forefront of the Russian real estate market and accurately reflect the report’s findings that the Russian commercial real estate market demonstrated strong resistance to the eurozone uncertainty and performed better than most European markets, with retail and office as the most sought after investment sectors.

An Orrick team, led by corporate partner Olga Sirodoeva, represented Hines, a leading international real estate firm, in the sale of the Ducat Place III office complex in Moscow, one of the premier office addresses in the city, to O1 Properties Group. Ducat Place III is a 14-story Class-A office building with approximately 33,000 sq m of leasable space. Constructed and managed by Hines and opened in January 2007, Ducat Place III is the first commercial building in Russia to be declared “green”— BREEAM® certified. Located in the advisory district of Moscow, Ducat Place III is home to the offices of Boston Consulting Group, Citibank, Clifford Chance, Conoco Phillips, Goldman Sachs and other global corporate and financial services companies. Orrick's Moscow office is located across the street in its sister property, Ducat Place II.

In addition, an Orrick team led by corporate partner Philip Windemuth advised Immofinanz Group on its acquisition of the Golden Babylon Rostokino shopping center, a flagship for the Moscow retail sector and one of the largest shopping centers in Continental Europe. Orrick began counseling on the matter in 2007, throughout the financing and construction phase of the project, and recently advised upon the completion of the final share purchase, giving Immofinanz a 100% ownership interest in the project.
 
Another Orrick team, led by corporate partner Olga Sirodoeva, represented Aareal Bank, one of the leading international property specialists listed in Deutsche Börse's SDAX index, in the sale of Pushkino Logistics Park, a Class A logistics complex consisting of 213,000 sq m in the Northeast of Moscow. The property was purchased by Raven Russia, a property investment company listed on the Main Market of the London Stock Exchange (LSE), for $215 million, in part financed through offering preference shares on the LSE and in part through a $129 million acquisition financing by Aareal itself. Orrick handled both the equity and the financing, as well as the English and Russian legal issues of the transaction.