A U.S. investment fund has agreed to buy a shopping mall in downtown St. Petersburg for $1.1 billion, in Russia’s largest ever real estate deal.
Morgan Stanley Real Estate Fund VII will purchase the Galereya (Gallery) center from Meridian Capital, run by a group of Kazakh investors, sources close to the transaction told Vedomosti business daily.
The purchase of the mall, St. Petersburg’s largest, is expected to be completed later this month.
If completed, the transaction will be the largest on Russia’s real estate market, business analyst Sayan Tsyrenov told Vedomosti.
Galereya opened in November 2010 and features 290 stores, a 10-screen movie theater, and a 27-lane bowling alley.
Morgan Stanley and Meridian Capital were not available for comment.
