Investment company O1 Properties, one of the largest owners of commercial real estate properties of Class A and B+/B in Moscow, is pleased to report that it has purchased 0.41 hectares of land for a new development project which will be implemented in the Western Administrative District of Moscow with the address at 25 Vasilisa Kozhina Street.
The project involves construction of a Class A business center in the Park Pobedy District, in the direct proximity to Kutuzovskiy Prospect.
According to the existing project documentation, it is planned to build a 20-story office building with an underground 2-level parking garage and also an outdoor parking area inside the complex. The construction area will amount to 0.21 hectares. The building’s square footage is 27.34 thousand sq. m., of which the above-ground space is 19.6 thousand sq. m. The number of parking spaces is approximately 300.
To implement this project, O1 Properties intends to involve international architectural and design firms, which would take into account Russian specificity of building high-class properties. The main requirements are to create modern design and to comply with environmental standards, to master well-executed layouts, and to equip office spaces in a smart way.
“We have been keeping an eye on the Kutuzovskiy Prospect neighborhood for a while,” said Dmitriy Minz, the President of the Board of Directors at O1 Properties. “It is a prominent area of Moscow – one of the most attractive markets of Class A commercial real estate. We are planning on building a property of the highest caliber right here, and we are counting on considerable interest from potential tenants.”
According to Mikhail Mindlin, Partner, Head of Office Department at Cushman & Wakefield, deal adviser, O1 Properties has made the right choice with the new site at Vasilisa Kozhina Street. The future office building will be well accepted by the tenants due to its location, the efficient and most demanded size of the building, and of course the reputation of the developer, who is associated with only the best Class A properties in Moscow.
Alexey Kuchvalsky, Regional Director, Head of Office Agency, Jones Lang LaSalle stated: “Currently, the Western Administrative District of Moscow does not offer enough Class A business centers; its share of this segment of market in the city is just 6%. At the same time, the demand for office space is consistently high there, yet Class A vacancy rate within that neighborhood has been consistently low at 1% for the last two years. With these trends in place, we expect that the new project of O1 Properties will be highly demanded among potential tenants, including large international companies.”
Taking into consideration the acquisition of the land at 25 V. Kozhina Street for the purpose of the new development project, O1 Properties currently owns and operates a portfolio of three development projects and eleven completed business centers in the key business districts of the Russian capital city, with the total rentable area of 445,500 sq. m. The market value of this portfolio is $3.85 billion.