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News Release

Moscow

VTBC-Ashmore Real Estate Partners I L.P. Private Equity Fund acquires 8th of March Office and Warehouse Centre

Jones Lang LaSalle was representing the sellers – Aton Real Estate and Espro Development – in this transaction


Moscow, 22 December 2011 – Jones Lang LaSalle announces completion of an investment sale of 8th of March mixed-use property located in Moscow by its previous owners Aton Real Estate* and Espro Development to VTBC-Ashmore Real Estate Partners I L.P.

Jones Lang LaSalle Capital Markets exclusively advised the sellers of the property. Burchills acted as a legal counsel for the sellers, and Clifford Chance acted in the same capacity for the purchaser.

Gross buildable area of the property is circa 21,000 sq m It includes warehouse and office space of approximately 9,700 sq. m 8,200 sq m of rentable area respectively and over 400 parking places of surface and underground parking on site.
The tenants of the property are largest Russian and international tenants, including DHL, which occupies over 50% of the gross leasable area (GLA), Ozon internet store, OSG Records Management and Linx Telecom.

Petr Roshchin, Head of Real Estate, Aton Real Estate, told: “Notwithstanding the rumors of the upcoming second wave of crisis and potential economic decline this transaction demonstrates the undiminishing interest to the Russian real estate from both international and Russian investors.”

Apart from the income producing facilities at the property there is an opportunity for a development of a new 9-storey office building with a total area of 6,323 sq m, providing a return upside for the purchaser.

Victor Makshantsev, Global Head of Infrastructure and Real Estate Investment Funds of VTB Capital Investment Management and member of the Investment Committee of VTBC-Ashmore Real Estate Partners I L.P., said: “The fund has secured an attractive investment in line with its strategy of picking up assets with strong value fundamentals, protecting against negative market fluctuations and offering significant upside potential. The advantageous location and class of the property are definitely key factors for express delivery and logistics businesses, which comprise the main tenants of 8 Marta Street complex.

Even though the conditions of the Private Equity markets were not simple, we have been able to raise capital from the largest Scandinavian and European investors (the second stage of raising capital for the fund was fully completed by the beginning of 2011). Now we have moved to the stage of active investment of the fund capital, and besides the deal on the property on 8 Marta Street, we have identified and progressed Due Diligence for five more deals in Moscow and St. Petersburg.”
Irina Ushakova, Associate Director, Capital Markets, Jones Lang LaSalle Russia & CIS commented that “8th of March Complex is a rare project for the city, as it provides in-town logistic space for the demanding international occupiers. The main seller is the institutional investor, which helps reduce risks for the purchaser and facilitates due diligence. This deal is a first VTBC-Ashmore Real Estate Partners’ transaction in Russia.”

Thomas Devonshire-Griffin, Head of Capital Markets, Jones Lang LaSalle, Russia and CIS, mentioned: “We believe this transaction represents a fair deal for both parties, showing profit for the vendor as well as core returns for the purchaser as well as opportunistic upside. With both acting in a professional institutional manner, a complicated transaction was made far easier, evidences that logistics space is an interesting type of investment in real estate – carrying both low risk and decent returns for its owners”.


*Aton Real Estate acquired a majority stake in the property from Espro Development in 2007.


About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 167 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.9 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010 and 2011 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit our website www.joneslanglasalle.ru