Yandex NV (NASDAQ:YNDX) revealed on Monday last week that it has struck a deal that will allow it to acquire a piece of land in Moscow where its new headquarters will be located.
The announcement, which was made on December 24 revealed that Yandex plans to acquire the piece of Land in Moscow for roughly $145 million. The land is located at 15 Kosygina Street in Moscow, Russia where it is called the Kosygina Site. The tech firm revealed that it has already signed binding agreements that will grant it rights to the land which measures roughly 4 hectares.
The acquisition deal is currently subject to regulatory review by Moscow’s government. Meanwhile, the Korston Hotel now occupies approximately 65 percent of the Kosygina Site, but that will change once the deal is finalized in Yandex’s favor. The site currently hosts seven buildings, and it consists of roughly 80,000 square meters of class A as well as class B office space.
“We are very excited with the opportunity to create our campus in the heart of Moscow, in close proximity to the science and educational cluster of Russia,” stated Yandex CEO, Arkady Volozh.
A positive move for Yandex’s future
Volozh believes that the opportunity to purchase the land will allow Yandex to continue attracting new talent which will be vital for the company’s growth. The company plans to achieve more growth and scale while also investing in new products and services for its customers.
Yandex executives also believe that the deal makes a lot of sense for the company as far as long-term operating expenses management is concerned. The firm plans to create its new headquarters on the site once the deal is approved. Yandex has also signed multiple deals with Orlenok Hotel Compex OJSC, the company that occupies the largest share of the Kosygina Site.
Yandex also revealed that it plans to release any updates on the expenses and development timetable for the project in the future.
Yandex stock performance
Yandex’s stock closed Monday’s trading session and subsequently the year 2018 at $27.35 after a -2.01% drop from the value of the stock during the previous close. The stock achieved a 52-week high of $44.49 while its 52-week low was $24.90. The stock price will close the year while leaning more towards the lower side of the 52-week price range.
Analysts have a 1.7 recommendation on Yandex stock on the 1 to 5 numeric scale in which 1 represents a strong buy, 3 represents a hold, and 5 represents a strong sell. Despite its current performance, the stock’s price target has been set at $41.24 which means that analysts are optimistic about future performance.
Yandex registered a 1.6% EPS growth over the past five years, and it expects its EPS growth to hit 0.65% in the next five years. The estimated EPS growth rate for 2018 was 27.1% while the estimated EPS growth rate for 2019 is 46.07%.
Yandex is a Russian-based company that offers a variety of products and services primarily related to the internet. Its products and service are offered to a range of technology sectors that include mobile applications, transportation, e-commerce, online advertising, search and information services.
The company has machine learning at the center of its products, and its main goal is to help its clients to navigate the offline and online world with ease. Yandex has been around for over two decades now, and it has grown into a multinational company within that duration. So far the firm has 27 offices distributed across the globe.