Chinese investors are interested in Russian corporate real estate

Investors in the Russia-China Investment Fund, which was formed on the basis of the Russian Direct Investment Fund and the China Investment Corporation (CIC), plan to buy a considerable stake in the Comcity Business Park (located two kilometers from the Moscow Ring Road). The purchase should take place before the end of this year.

The overall project plans for construction of over 400,000 sq m. of office space. The first phase of the project has already been finished with an area of over 100,000 sq m, while the second phase, over 50,000 sq m., should be commissioned in the third quarter of next year.

Business activity has recently gone outside the Moscow Ring Road because major business owners and top management are living in the Moscow region. As Moscow expands and business activity gradually shifts from the centre, the investment allure of corporate real estate in the Moscow area also increases.

The Fund thus intends to purchase the already constructed part of the business park in which sites are leased by major companies (e.g., Rostelecom, Oracle and Sistematika). The agreement also includes a buy-option for the business park phases under construction and management of corporate real estate in them as the sites are leased by other major companies.

We recall that the Russia-China Investment Fund was formed in early 2012. At that time, joint investment was planned by the partners in various projects for over 2 billion dollars, and it was decided to attract another 2 billion from outside investors.

The Fund is currently seeking additional attractive assets on the Russian corporate real estate market.