Real Estate and Construction
The Real Estate and Construction Practice is one of our key practices. We successfully support real estate transactions (the acquisition of industrial complexes, office buildings, shopping centers, land); secured transactions with real estate, lease transactions for retail and office space and warehouse premises, and also land.
We also support construction projects at every stage of implementation, including greenfield and brownfield projects, both in respect of residential and non-residential facilities.
We advise property developers on the application of legislation on participation in joint construction, including cases where investors and municipalities act as co-financing participants. We also have extensive experience of working with apartments and understand the specifics of such properties.
As well as vast experience of the real estate and construction sector in Moscow and Moscow Region, we have accumulated corresponding expertise in other Russian regions, such as: Saint Petersburg and Leningrad Region, the Volgograd, Sverdlovsk, Tver and Tula Regions, Krasnodar Territory and Irkutsk Region.
- Providing legal support during the construction and development of Skolkovo Innovation Center, including the drafting and negotiation of investment agreements, investment property lease agreements, engineering survey and planning contracts, construction contracts based on various contract models, including EPC (Engineering, Procurement and Construction) and EPCM (Engineering, Procurement, Construction Management), FIDIC contracts, and also open book, cost plus, etc.), fee development contracts and other agreements for the construction of different facilities at Skolkovo Innovation Center, including Skolkovo Technopark, the residential districts of Skolkovo Innovation Center, major engineering installations, backbone and distribution networks, other infrastructure facilities and the multi-functional complex Skolkovo City.
- Conducting the pre-acquisition due diligence of the 240,000 sq.m. Golden Babylon shopping and entertainment center for the subsidiary of a foreign investment fund.
- Preparing the technical position and participating in the preparation of procedural documents from a Russian law perspective required to represent the foreign contractor Iberdrola Ingeniería y Construcción in International Chamber of Commerce (Paris) in a dispute with OGK-5 OJSC under the EPC for the construction of new power-generating unit at Sredneuralsk State District Power Plant. The parties concluded an amicable agreement.
- Advising on a retainer basis several construction companies (Gazstroyinzhiniring LLC, Highway Constructions LLC, Manyanya LLC and others). As part of the retainer services, we represent the clients in court in disputes with contractors and construction clients, support the conclusion of loan agreements with banks and the drafting of bank guarantees, advise on procurement procedures, assist with appeals against the illegal actions of state clients. We drafted the standard forms of contractor agreements, contracts on the supply of materials, sale and purchase agreements for several construction companies. We also advise construction companies on issues pertaining to the receipt of a certificate of a self-regulating organization, compliance with industrial safety, occupational health and safety requirements and other requirements.
- Drafting a legal opinion for a consortium of banks and mezzanine investors as to whether three residential development projects over a total area of 800,000 sq.m. located in Moscow and Moscow Region could serve as collateral, as part of a project to enable the property developer to raise the finance required to build the assets. The assignment included a legal due diligence of the developer’s title to the real estate properties and a review of compliance with the terms and conditions of investment agreements with the Russian Federation and the City of Moscow, and also analysis and recommendations on how to modify the structure of pledges and arrangements for the sale of the flats.
- Providing comprehensive legal support for the sale by the investment fund Fleming Family & Partners of several warehouses in Tomilino Village, Moscow Region, including the drafting and negotiation with the buyers of all the transaction documents governed by English law, including the share sale and purchase agreements for the special-purpose vehicles owning the real estate properties and related documents (disclosure letters, warranties, indemnities, etc.); and assistance with the closing of the deal.
- Representing the interests of the design and build company Arco LLC in a dispute with Auchan LLC arising from a contract on the drafting of working documentation.
- Providing legal support for Praxair, a leading global supplier of atmospheric, technical and special gases and producers of air separation plants, regarding the acquisition from SIBUR-Russian Tyres of shares in Volzhsky Azot, an industrial and packaged gas business in Volgograd Region.
- Representing the interests of VEB-Invest LLC a subsidiary of the Russian State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), in a dispute with the contractor arising from the contractor agreement for the amount of more than RUB 500 million. Handling simultaneously approximately 60 lawsuits for VEB-Invest LLC, including on corporate, land and tax disputes, the recovery of accounts receivable disputes arising from construction contracts, disputes with customers (buyers of houses) and the public authorities, cases on the review of the cadastral value, etc.
- Representing the interests of a major Russian developer during the conclusion of a preliminary lease agreement with a major American company for more than 7,000 sq.m. of office space in an office center being built in Moscow Region.
- Providing legal support for the acquisition by the Japanese company Yunika of real estate properties in Moscow for the amount of approximately RUB 1.2 billion and in Izhevsk for RUB 240 million.
- Conducting a legal due diligence of title to a land plot owned by the operating project company in connection with proposed project financing for the construction of an oil pipeline from Afipsky Oil Refinery up to a marine terminal in Tsemes Bay, Krasnodar Territory.
- Advising French Kiss , a premium chocolate manufacturer, on the acquisition of an administrative building with a total area of 3,000 sq.m. in Moscow, including due diligence of the title of the seller to this building, negotiation of the real estate sale and purchase agreement, approval of the transaction financing agreements (loan, mortgage, second mortgage agreements), support for the state registration of the transfer of title and pledges.
- Preparing an agreement for the development of working documentation and performance of construction and installation works for the construction of a warehouse complex in Tomilino Village, Moscow Region, for investment fund Fleming Family & Partners.
- Conducting a legal due diligence of a land plot and incomplete construction project, located in Sverdlovsk Region and designated for the siting of a truck service center for Volvo Vostok CJSC.
- Advising Swedish real estate investment fund 11 Real Asset Fund AB, and its subsidiaries on all deals related to investments in Russian real estate located in different cities: Moscow, Sochi, Ekaterinburg, Kaliningrad, etc. We also assisted with the arrangement of financing for the development projects of the group, including the negotiation of credit documentation, the registration of mortgages and other financial documents.
- Advising American corporationFrost&Sullivan on the conclusion of an agreement for the lease of a class A office building in Moscow.