IMMOFINANZ Group: Takeover of Golden Babylon Rostokino in Moscow finalized (AT/RU)
Tuesday 22 May 2012
Following the approval by the Russian antitrust authorities, the purchase of the remaining 50% of the Golden Babylon Rostokino shopping center by IMMOFINANZ Group was finalized on May 16. The agreement on the acquisition from the co-owner Patero was signed in March, whereby the parties have agreed not to disclose any information on the purchase price.
“We are pleased to have already completed the acquisition of the Golden Babylon Rostokino shopping center. The agreement with our joint venture partner Patero over the full takeover of the Golden Babylon Rostokino was signed only recently in March.
“The quick finalization of this transaction will now allow us to include the total rental income from the Golden Babylon Rostokino in our books sooner than expected and, in this way, make an important contribution to improving our operating results,” commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group.
The Golden Babylon Rostokino shopping center was developed as a joint venture with Patero, a local firm, and opened in November 2009. It is the most profitable shopping center in the IMMOFINANZ Group portfolio. In order to repay the development financing provided by the parent company, IMMOFINANZ Group concluded a long-term financing agreement with the Russian Sberbank in March that covers a maximum volume of US $715 million.
The Golden Babylon Rostokino is located in the densely populated Sviblovo district of Moscow. With roughly 168,000 m² of rentable space and 241,000 m² of total space, it is not only a flagship for this city’s retail sector but also one of the largest shopping centers in continental Europe.
Moscow – IMMOFINANZ Group’s most profitable market
The Austrian IMMOFINANZ Group has been active on the Russian market as an investor for more than five years. During this time the company has compiled an attractive portfolio that currently includes five standing investments with a combined carrying amount of €932.5 million: four shopping centers and one logistics property.
In the Russian retail sector IMMOFINANZ Group focuses on Quality Shopping Centers in Moscow. With its four retail properties, the company is one of the most important foreign investors in the Russian capital. During the first three quarters of the 2011/12 financial year, IMMOFINANZ Group generated rental revenue of €71.3 million and a gross return of 11.6% in this market. These results not only make the Moscow retail sector by far the most profitable market for IMMOFINANZ Group, but also produce continuous sound cash flows. With a 37.1% share of the total retail portfolio, Moscow is also the most important market in this asset class.
In addition to the Golden Babylon Rostokino, the Golden Babylon I and Golden Babylon II shopping centers are among the highest revenue-generators in the Russian capital. These two properties have been part of the IMMOFINANZ Group portfolio since mid-2006 and represent the company’s first investments in Moscow.
With a tenant mix of well-known national and international brands that is perfectly matched with the catchment area, the Golden Babylon I alone draws more than one million visitors each month. The Golden Babylon I is located in the Otradnoe district in the northeast of Moscow, the Golden Babylon II in the Yasenevo district in the southwest. Both shopping centers have excellent connections to the subway network and are fully rented. The fourth property is the Fifth Avenue; it has 21,290 m² of rentable space that is almost fully let and is also one of the most profitable shopping centers in Moscow.
The Shushary logistics center in St. Petersburg has been part of the IMMOFINANZ Group portfolio since 2008 and has a carrying amount of €32.0 million. This prime property has 41,300 m² of fully occupied rentable space. Its favorable geographic location includes close connections to Pulkovo Airport.
IMMOFINANZ Group realizes its first own development project in Russia
The Moscow retail market also remained extremely stable and profitable during the crisis. This and other factors led to a decision by IMMOFINANZ Group in May 2011 to acquire the remaining shares in the the GoodZone development project from the joint venture partner. The GoodZone is one of the largest retail projects in this city of 11.5 million and represents the second largest shopping center under development by IMMOFINANZ Group in its most important retail market. This project is currently under construction on Kashirskoe Shosse in the southern district of Nagatino-Sadovniki, a densely populated area of Moscow.