Ian and Richard Livingstone’s Northern European Properties continues its expansion into Russia buying a further €231m (£157tm) of property in the region.
The company, which invests in property in the Nordic and Baltic regions, has bought six properties across Baltic Russia. It has bought two office properties in St Petersburg, a shopping centre which provides around 26,700 sq m (276,635 sq ft) of space at a yield of 10%.
It has also bought two shopping centres comprising 37,800 sq m (406,900 sq ft) of retail space in Kaliningrad and Murmansk. The shopping centre in Kaliningrad has an office building connected to the scheme. The yield on the deal is 10.5%
The other two properties are a 278-room hotel and a retail DIY store in
St Petersburg which it bought from the Livingstone’s London & Regional Group for around €82m (£55m) at a yield of 9%.
The deals will complete in August and will push Northern European Properties’ holdings in Russia to more than €600m (£408m).
The company said it would target other large cities in Russia and increase its development exposure in the region.
Northern European Properties has also sold 11 office and industrial properties in Sweden and Finland for €232.7m (£158m) to unnamed vendors. Seven of the properties are in Finland, the largest of which is an office building leased to Nokia for €186.5m (£127m) at a yield of 5.7%. The rest of the properties were in Stockholm and were sold for €46.2m (£31m) at a yield of 4.9%. It said it sold the properties to optimise the value of its existing portfolio.