Knight Frank and Eurasia Logistic have closed the first lease deal in Northern Domodedovo.

11 April 2007

The first lease agreement has been signed for Class A industrial logistic complex Northern Domodedovo, the developer for which is Eurasia Logistic. Multiflex, a major Russian manufacturer of packing materials, has become the first Tenant of the complex, which plans to locate new production within the area of 33 000 sq m. Knight Frank international consultancy has been a consultant for the transaction acting on behalf both the Tenant and the Developer.

The transaction is so specific due to the fact that the building has been built to meet the requirements of a certain Tenant, - so called built-to-suit with further long-term lease deal. Such a practice is not so wide-spread in commercial real estate market.

Roman Burtsev, Knight Frank’s partner, Director of Warehouse, Industrial & Land, forecasts increase in the number of built-to-suit transactions in warehouse real estate market. According to him such a trend results from growing demand on the Tenants’ and Owners’ side with a background increase in competition between leading development schemes.