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New food production facility to be launched in Pushkin

The St. Petersburg company A+ Development has purchased a 40,000 sqm former brewery building in the Pushkin district of St. Petersburg from SUN InBev. This property will be converted into a food production facility. Colliers International acted as the exclusive representative of the seller for this major transaction in the commercial real estate market of Northwest Russia.
Currently a major overhaul of the building is being completed. A manufacturer of bakery products, Darnica Group, became the first anchor tenant of the new premises. The company has leased 70% of the building’s premises and plans to launch new production within three years. The remaining premises of this complex are intended to host three more food production facilities. Long-term lease agreements with the prospective tenants are being negotiated at the present time. The remaining premises should be completely occupied by tenants by the end of autumn 2013.


The former brewery consists of the three modern industrial buildings and has large quota for water and gas usage as well as wastewater discharge. These facilities are an ideal match for energy-intense food production. According to Colliers International, the St. Petersburg market has a deficit of large, high-quality facilities for food manufacturers while at the same sees very high demand for such premises. These factors were key in the developer’s decision to acquire the property and point to the project’s future success.


Peter Gavyrin, Managing Director of A+ Development: “We have implemented a full conversion of the facility: removed all the equipment and completed a major overhaul of the building to suit the specific needs of our clients. Today we see this property as one of our success stories in the industrial segment.”


Vladimir Sergunin, Business Development Director at Colliers International Russia: “This transaction is a rare and almost unique example of the purchase of an industrial property not for one’s own needs but for further lease to a new manufacturer on the St. Petersburg market in 2013. Redeveloping such a property involves substantial risks, requiring not only a large investment but also a clear understanding of prospective clients’ needs. The success of this project points to the high level of professionalism of the developer. For the seller this has been an opportunity to optimize business processes and to divest non-core assets. We were delighted to engage so many real estate market professionals and manufacturing companies in this deal.”