Categorized | Commercial

Morgan Stanley Plans to Buy Russian Mall

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Morgan Stanley has made a major move to expand its commercial real estate portfolio. The real estate fund has agreed to purchase the Galeria Center in St. Petersburg, Russia for just over one billion dollars.

The Galeria Center is the largest mall in central St. Petersburg. It has roughly two hundred and fifty stores over five floors, and is about one million square feet in size. The St. Petersburg mall also has a multi-screen movie theater, a bowling alley, and a large underground parking garage.

The purchase is a major piece of the plans set in place by the real estate fund to invest money committed by such backers as China Investment Corp., Canada Pension Plan Investment Board, and the Government of Singapore Investment Corp. Those backers committed roughly four billion dollars to the fund for various international real estate investments. The Morgan Stanley Real Estate Fund has said that they will have invested the remainder of the money within the next year and a half.

The real estate fund hopes to take advantage of strong retail sales in St. Petersburg, Russia. The sale was one of the biggest to take place in Russia over the last five years. It has yet to be seen if the Morgan Stanley Real Estate fund will invest the remainder of their backers’ money in Russia, or if they will look to other countries around the world. They have invested less than half of the money thus far, and as such, will likely make another purchase in the very near future.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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