Deutsche Bank Global Commercial Real Estate Completes Equity Investment in Mixed Use Office and Hotel Development in Central Moscow
Deutsche Bank’s Global Commercial Real Estate Group has completed an investment in which the bank was the cornerstone of a joint venture established to acquire and develop a commercial mixed-use site in the Paveletskaya region of Moscow. The development will comprise four eleven story office buildings and a 170 room hotel totalling approximately 110,000 sqm including approximately 1,000 parking spaces. The development is scheduled to complete in mid 2009.
Deutsche Bank will be partnering with Otkritie Financial Corporation, a leading privately-owned Russian financial services and property development company who will be co-investing as well as providing development management services for the project. Also investing in the joint venture is NY-based private equity fund Starr Investments and United States hedge funds, Old Lane LP and Artha Capital.
Along with the equity investment, the Deutsche Bank Global Commercial Real Estate Group is providing a $320 million construction loan to fully fund the construction of the project.
Strabag AG will be providing general contractor services for the project.
"We are very pleased to be part of this transaction – it illustrates the unique ability of the Deutsche Bank Global Commercial Real Estate to provide financing across the entire capital structure and our commitment to the Russian real estate market," said John Nacos, Managing Director and Head of Deutsche Bank Commercial Real Estate for Europe, the Middle East and Africa.
The transaction represents a continuation of Deutsche Bank's Commercial Real Estate financing and investment program in Russia following the November 2006 acquisition of Pokrovsky Hills, the pre-eminent Moscow expatriate residential community comprising 207 single-family homes adjacent to the Anglo-American School. The bank acquired Pokrovsky Hills in a partnership with AIG Global Real Estate and also provided a senior investment loan facility for the acquisition. Deutsche Bank is very active in the Russian Federation with additional joint venture investment and development transactions in advanced stages for which it will be applying a similar financing and investment model.
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Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 73,114 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
With over 500 professionals worldwide, Deutsche Bank’s Global Commercial Real Estate Group ("GCRE") is a global leader in real estate financing and capital markets execution, having originated $52 billion in loans and lead or co-managed approximately $75 billion of CMBS loans in 2006. Deutsche Bank provides financing to public corporations, private equity groups and individuals owning or acquiring commercial real estate assets in all property types within the European, US and Asian markets. For more information on CRE including a sampling of our most recent financing solutions, visit our website at www.db.com/cre.