Immofinanz closes US $100 mln. refinancing deal for two properties in Moscow (DE/RU)

Immofinanz Group has closed a US $100 million refinancing deal with Nordea, one of the leading banks in the Scandinavian and Baltic region, for the Golden Babylon 1 and Golden Babylon 2 shopping centers.

Golden Babylon

Immofinanz also owns the Golden Babylon Rostokino shopping center in Moscow.

The refinancing efforts for the two properties began at the end of 2009 and successfully closed in August 2010, despite the extremely challenging situation in the international financial markets. Both shopping centers have excellent locations and are 100% occupied. Until now, both properties were entirely financed with equity.

The two properties have formed part of the Immofinanz Group's property portfolio since mid-2006, and were the first investments made by the Immofinanz Group in Moscow. With a combined footfall of more than 1 million visitors per month, the two shopping centers Golden Babylon 1 (Otradnoe district) comprising 25,370 m² and Golden Babylon 2 (Yasenevo district) comprising 9,049 m² of leasable area, are both among the retail properties with the highest turnover figures in Moscow. Some of the largest tenants are Russian top brands such as Perekrestok (X5 group), L`Etoile, O`Stin, Centro and Luxor Cinemas. Thanks to the attractiveness of both properties, Immofinanz Group has been able to achieve a high occupancy rate and a stable rent level over the past several years.

Shopping centers are the strongest asset class
Immofinanz Group already owns four shopping centers in Moscow and is one of the most important investors in the retail property market in the Russian capital. Only a few months ago, the Golden Babylon Rostokino shopping center, one of the largest shopping centers in Europe with 170,000 m² of leasable area and more than 5,200 parking spaces, was completed and put into operation. Full occupancy of Golden Babylon Rostokino is expected by end of the year.

The fourth property, named '5th Avenue', comprises a leasable area of 21,150 m² and, with close to full occupancy levels, is also among the best performing shopping centers in Moscow.

Dr. Eduard Zehetner, CEO of Immofinanz Group: "In light of the recently completed restructuring process of the group and despite a still difficult economic environment, we are delighted that we successfully closed this refinancing deal in our operational core business. The funds raised can be used to invest in further business development".

Source: ACCEDO Austria GmbH

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