Deutsche Bank, AIG Global Real Estate and Redwood Group have teamed up to purchase up to $1.2bn (£590m) of logistics properties and development sites from Moscow-based Capital Partners.

The trio has purchased 2.155m sq ft of existing space and a further 8.6m sq ft of development land. While the purchase price has not been confirmed, logistics space in Russia has been changing hands for approximately $1200/ sq m (£54.90/ sq ft) and this deal is believed to have been agreed using similar pricing.

The portfolio includes the Pushkino Logistics Park located along the M8 to the northwest of Moscow and is occupied by tenants such as DHL and Auchan. Most of the development sites are to the south of Moscow at the intersection of the Betonka Ring Road and the M4, close to the Domodedovo International Airport.

Deutsche Bank provided the senior investment loan to finance the acquisition. It is the second deal for Deutsche Bank and AIG Global Real Estate in the Russia.

Stuart Gibson and Charles de Portes, co-founders of Redwood, said in a joint statement: ‘Through the provision of one million square meters of international standard distribution space, this Joint Venture will meet the tremendous demand of the Moscow market that is currently pushing Grade A distribution vacancy rates below 1%.