Modernized Spa Rises On Predecessor's Plot.

(From The Moscow Times)

A historic spa complex will return to Novy Arbat by mid-2010 after a nearly two-decade absence, this time packaged with high-end apartments and office space.

Russian developer Baltiiskaya Stroitelnaya Kompania will build the multiuse complex, including a 23,400-square-meter spa for the Russian Scientific Therapeutic Spa and Bathing Center, part of the Health and Social Development Ministry, the company said in a statement.

Although most analysts say the complex with its total of 93,600 square meters of space and prime location on one of central Moscow's busiest thoroughfares is a sure bet, the developers have taken the unusual step of selling off the office space in blocks, rather than leasing larger sections.

"Selling in blocks is more profitable for the developer and consultant than selling as one piece," said Yelizaveta Luchitskaya, a spokeswoman for DTZ, which is serving as a consultant to the project along with IntermarkSavills. DTZ said in an e-mailed statement that it would be selling the office space, while IntermarkSavills will be managing the residential space.

In another departure from the standard practice for such multiuse centers, the development at Novy Arbat 34, which has yet to be named, will feature the government spa and research center instead of a more traditional anchor tenant.

The complex will be located on the site of the former Central Government Institute for Therapeutic Bathing, which was built in the 1920s to research balneology, or the study of medicinal baths, BSK's statement said.