November 2, 2017 / 4:10 PM / 10 months ago

Russia's Hals Development signs deal with state agency to sell real estate

MOSCOW, Nov 2 (Reuters) - Russian real estate company Hals Development said on Thursday it has signed a deal worth about $429 million to sell office space in Moscow for the use of government officials moving to the area.

Hals, owned by Russian state bank VTB, said it has reached the deal with the state Unified Development Institution in the Housing Sector (UDIHS) over the sale of 74,655 square metres of real estate in the Moscow City business area.

The value of the deal, which also includes 327 car parking places, is estimated at 25 billion roubles ($429 million), Hals said in the statement.

Moscow City is a modern business district with skyscrapers, where some banks, including VTB, have offices. VTB took over Hals in 2009 in exchange for restructuring its debt.

UDIHS did not immediately reply to a Reuters request for comment. This week, UDIHS said it planned to raise a total of 10 billion roubles by issuing domestic bonds with a maturity of 33 years.

Russia’s economy ministry along with the ministry of industry and trade and the communications ministry are all expected to move to Moscow City next year, according to a government decree issued in September.

$1 = 58.3092 roubles Reporting by Olga Sichar, Darya Korsunskaya, Elena Fabrichnaya and Elena Orekhova; writing by Katya Golubkova; Editing by Elaine Hardcastle

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