CREDIT EUROPE BANK Ltd. lends USD105 million for Bolshevik Business and Cultural Complex Renovation Project

12.02.2014

CEB executed the subject financing for the Bolshevik Project, providing a USD 105 million credit line for the acquisition and consequent renovation of the business park. The proceeds under CEB loan facility have already been partially utilized to refinance exposure with the previous lender as well as financing of additional costs incurred under Phase I renovation launched in early 2013.

In 2012, O1 Properties, one of the major owners of prime office real estate in Moscow and Tactics Group, acquired “Bolshevik” Plc, which owns complex of buildings of the former confectionary factory on Leningradsky avenue (50%+ 1 share stake is owned by O1 properties; 50% - 1 share stake is owned by Tactics Group).

The buildings of the former “Bolshevik” confectionery factory will be transformed into a new cultural and business destination with landscaped recreation area, museum of Russian Impressionism, cafes, restaurants, shops and a modern loft-styled business center. Tenants may lease office spaces with sizes ranging from 200 to 15,000 square meters. The renovation is being held in two phases to be completed by Q1 2015 and Q4 2016. The first tenant, media holding company Publicis Groupe, is planning to move to Bolshevik in Q4 2014.

Located in one of the prime business districts of Moscow close to Belorusskaya metro station, Bolshevik cultural and business complex (gross building area approximately 86,000 sqm, NRA approximately ~73,000 sqm) is destined to become a landmark office project and expected to generate ~ USD 50 million of net operating income per annum.

CEB is an active lender in the Russian commercial property market with an extensive experience in financing and refinancing of commercial real estate assets at various stages of development.