The company has successfully ended the sale of its retail portfolio to the Russian FORT Group.
IMMOFINANZ has now finished its exit from the Russian market through the financial year 2017 in line with the business strategy.
“We repositioned the five Moscow shopping centers to reflect the changed market environment in Russia. That set the stage for the start of a multi-stage structured sales process which has now ended with the transfer of the properties to the buyer“, said Dietmar Reindl, COO, on the transaction.
The object of the sale is the Austrian holding company that includes all of the investments in the property companies which hold the retail portfolio in Moscow.
Oliver Schumy, CEO of IMMOFINANZ: “Over the past two years we have eliminated some risks – for example through the settlement of historical lawsuits filed by investors and the reduction of risks in our portfolio. However, the most important milestone was the sale of our retail portfolio in Moscow. The market climate in Russia has been difficult for many years and has had a substantial negative effect on IMMOFINANZ. As previously announced, we had finalized the sale of the Russian shopping centers before the end of 2017 and closed the transaction in the shortest possible time. The IMMOFINANZ portfolio with its office and retail asset classes is now clearly focused on the stable Western European markets of Germany and Austria and the promising growth markets in CEE.“
The sale of the retail portfolio Moscow generates immediate net cash flows EUR 72.0 million. The purchase agreement also includes an additional confirmed payment of EUR 14.5 million in January 2022 and an earn-out of up to EUR 129.6 million based on the revenues from the shopping centers in 2021, which is also due in 2022. Also, IMMOFINANZ can participate with up to EUR 14.4 million in the positive outcome of current tax reimbursement proceedings.