VTB Capital-led Consortium sells White Gardens office center to Millhouse

A consortium led by Russia’s leading investment bank VTB Capital, including TPG Holdings and China Investment Corporation, international developer AIG/Lincoln, and Coalco Development have completed their sale of White Gardens, a class A office center in Moscow, to Millhouse. The deal was facilitated by Jones Lang LaSalle.

PRESS RELEASE

A consortium led by Russia’s leading investment bank VTB Capital, including TPG Holdings and China Investment Corporation, international developer AIG/Lincoln, and Coalco Development have today announced the completion of their sale of White Gardens, a Class A office center in Moscow, to Millhouse LLC.

The deal was facilitated by Jones Lang LaSalle.

Located just off Tverskaya Street, Moscow’s central corridor, White Gardens comprises two office buildings totaling approximately 64,000 sq. m. of rentable area, and five underground levels of parking with 960 spaces. White Gardens is situated next door to White Square Office Center, which was sold by the same development team in late 2012 for a record sum of $1 billion.
Designed as a “green” office complex, with a focus on energy efficiency, environmentally friendly materials, and a construction process geared toward minimizing environmental impact, White Gardens is in the process of earning environmental certification from BREEAM, one of the world’s leading environmental rating systems for office buildings.

Tim Demchenko, Global Head of Private Equity and Special Situations at VTB Capital, noted: “This deal completes a series of successful transactions in the real estate sector executed by the private equity team at VTB Capital that has already carried out the acquisition and subsequent sale of the Lesnaya Plaza and White Square business centers. Investment in premium commercial real estate assets located in Moscow and, in particular, the White Gardens office center, has helped to bring high returns for our bank. In the future, we will continue to consider participating in real estate projects in Russian and international markets.”

Brian Patterson, Managing Partner of AIG/Lincoln Europe, stated: “White Gardens is the product of a successful collaboration of Russian and international partners. White Gardens would never have been possible without the foresight, dedication, and expertise of our Russian partners Coalco, led by Vasily Anisimov, and VTB Capital’s team, led by Tim Demchenko.”

Vasily Emme, Coalco Development, said: “This deal marks the completion of the successful construction project, namely two Class A office centers White Square and White Gardens. The objective for Coalco Development was to create a neighborhood with a unique vibe that could prove that Moscow is an international business hub. These plans became reality thanks to our partnership with AIG/Lincoln and VTB Capital, and we are pleased to share this success with them.”

John Mann, Millhouse LLC, added: “White Gardens is a key addition to Millhouse’s property portfolio. We believe that the experience of the development team and the quality of building construction resulted in the creation of a first-class product that is in high demand in the market. Its investment attractiveness will only continue to grow over time.”

VTB Capital, the Investment Business of VTB Group, is one of the three strategic business arms of VTB Group, along with the corporate and retail businesses. Since its foundation in 2008, VTB Capital has taken part in more than 460 ECM and DCM deals, which were instrumental in attracting more than USD 189bn worth of investments to Russia and CIS.

VTB Capital offers a full range of investment banking products and services to Russian and international clients, focusing on arranging operations in the debt, equity, global commodities markets, developing investment and asset
management, advising clients on M&A and ECM deals in Russia and abroad. VTB Capital operates in Moscow, London, Singapore, Dubai, Hong Kong, Sofia, New York, Paris and Vienna, with headquarters in Moscow.

VTB Capital holds top positions in the debt and equity capital markets in Russia and CIS according to the league tables for 2011and 2012 by Dealogic and Bloomberg. In 2011 and 2012 VTB Capital research team was ranked #1 in Thomson Reuters Extel Survey and Institutional Investor All-Russia Investor Survey.

This press-release does not constitute an offer to the public or an advertisement of securities in the Russian Federation, is not an offer or an invitation to make offers, to purchase securities in the Russian Federation and must not be passed on to third parties or otherwise made publicly available in the Russian Federation.

Press Office

Vadim Bely
Vadim.Bely@vtbcapital.com

Julia Govorun
Julia.Govorun@vtbcapital.com

About Millhouse
Millhouse LLC is a Moscow-based asset management company overseeing investments in a variety of industries including real estate, mining and metallurgy, energy, telecommunications, technology and sport. The company’s real estate holdings include the prestigious Krylatsky Hills, Balchug Plaza and Four Winds business centers and the under-construction Skolkovo Park residential complex and business park.

About AIG/Lincoln
AIG/Lincoln is an international real estate development company established in 1997 as a partnership between AIG Global Real Estate Investment Corporation and Lincoln Property Company of Dallas, Texas. AIG/Lincoln has developed over 50 projects in Europe, totaling over 2.5 million sq m of real estate.

About Coalco Development
International company Coalco Development is one of the leading Russian companies on real estate and land – development market. All the projects implemented by Coalco Development strive for preservation of the architectural image of the development areas and perfect mix of the historical and cultural background of properties and state-of-the-art performance.