O1 Properties acquires Zarechye office centre

July 30, 2015. Investment company O1 Properties has announced the successful completion of the transaction to acquire the Zarechye office centre from ICT Holding ltd. The deal was structured through additional issue of O1 Properties Class B shares, which were transferred to ICT Holding ltd. As a result, ICT Group increased its ownership of O1 Properties’ Class B shares from 24,5% up to 29%.

Zarechye is located in Moscow’s historic downtown at 5 Stary Tolmachevsky Lane within walking distance from Novokuznetskaya, Tretyakovskaya and Paveletskaya Metro stations. The facility comprises of two buildings with total area 15,517 m2 and 91 parking lots. Net rentable area of the office centre is 14,557 m2. The entire facility is leased up for a 10-year period.

Dmitry Mints, Head of the Board of Directors of O1 Properties: “We see such a deal structure as favourable for the company in the current market situation. For us this is a good opportunity to expand the portfolio through the acquisition of a completed facility with an excellent location and long-term tenant and at the same time to improve the capital base. For ICT Group this facility is a non-core asset, and this deal is the opportunity to transfer the building management to company with relevant expertise, increase the share in a transparent business and sell out the acquired shares at a better price when the market will recover”.

The construction of the first building of the office centre was completed in 2009. The second one - that was built 1932 and was used as a manufacturing facility in Soviet times - has undergone thorough reconstruction based on the design by Kleinewelt đÉrchitekten. Reconstruction is expected to be completed in 2015.

Given the new acquisition, the number of yielding office centres in O1 Properties’ portfolio has increased to 14, and total rentable area has expanded to 518,000 m2. The company’s portfolio is estimated at $4.3 billion.

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