A Morgan Stanley real estate fund has reportedly agreed to purchase the largest mall in central St. Petersburg, Russia, for approximately $1.1 billion.
According to a Bloomberg report that cites ‘two people with knowledge of the transaction,’ Morgan Stanley Real Estate Fund VII (MSREF VII) is set to buy the Galeria shopping center from Meridian Capital CIS Fund, which is identified as being operated by a ‘buyout firm backed by a group of Kazakh investors.’ The MSREF VII is backed by an international consortium of investors that include China Investment Corp., Canada Pension Plan Investment Board and Government of Singapore Investment Corp.
The 1 million square-foot Galeria cost $380 million to build and opened in November 2010. The center features approximately 300 stores in a five-floor spread, along with a 10-screen movie theater and a 27-lane bowling alley, along with underground parking for 1,200 vehicles.
Spokespersons for Morgan Stanley and Meridian Capital declined to comment on the news report.
(Photo courtesy Galeria.ru)
