One of the largest deals in retail real estate has been closed on the Russian market – an American conglomerate Morgan Stanley sold 49% of the shopping and entertainment center “Galeria” in St. Petersburg. The buyer was the Arab fund Mubadala, and the amount of the transaction, presumably, was more than 480 million dollars.
The deal was concluded at the end of 2019. It is reported that after the sale of 49% of the complex, Morgan Stanley will continue to manage the facility. Due to the sale of the complex, the total investment activity in the market of St. Petersburg has increased by more than 40%, according to Malls.ru.
Founded in the UAE investment fund, Mubadala operates with assets in real estate, retail, construction, and other areas. The fund’s portfolio today is estimated at $226 billion. In Russia it owns 25% of Pulkovo Airport, as well as 22.5% of World Class fitness club chain and other assets.
According to expert estimates, the cost of Galeria shopping mall is about $1.3 billion, and in the deal with Mubadala, a 49% stake could be sold for 480 to 560 million dollars. Today, the shopping center is the most expensive and most visited in St. Petersburg, with about 27 million people per year.
