White & Case LLP has advised Yandex, one of the largest European internet companies and the leading search provider in Russia, on its proposed acquisition from Krasnaya Roza 1875 Limited (KR1875) of a newly created entity that will own the central Moscow office complex that houses the group's Russian headquarters.

The complex is spread across approximately four hectares and includes seven buildings with around 80,000 sqm of Class A and B office space, 65 percent of which is currently occupied by the Yandex group. Yandex will continue to lease a portion of the space to third-party tenants in the medium-term, while securing access to additional space for long-term growth as the Yandex group expands.

Yandex has entered into a Framework Agreement with KR1875, a Cypriot company, pursuant to which Yandex will issue 12,900,000 new Class A ordinary shares to KR1875 in exchange for a 100 percent interest in a newly-created company that will hold title to the office complex and that will have approximately US$490 million of debt at closing. KR1875 has agreed to enter into a lock-up agreement in respect of these Yandex shares for a period of 90 days from closing. The closing of the transaction remains subject to certain conditions, including required regulatory approvals, and is anticipated to occur in the second half of 2016.

The White & Case team which advised on the transaction was led by partner Eric Michailov (London & Moscow) and associate Daria Plotnikova, supported by local partner Anastasia Putilova, counsel Adam Smith and associates Vladislav Ivanov, Timofey Neklyudov and Alina Chupakhina (all Moscow).