IMMOFINANZ Group, one of the largest foreign real estate investors on the Moscow retail market, and the Russian Sberbank have concluded a long-term financing agreement with a volume of up to US $715 million (approx. 545 million).
This 10-year loan will be used by the project development company, above all to repay the development financing provided by the parent company for the Golden Babylon Rostokino shopping center.
"The conclusion of this financing arrangement marks our second success in Russia in only a few days: at the end of March we reached an agreement with our joint venture partner Patero for the full takeover of the most profitable shopping center in IMMOFINANZ Group's portfolio and shortly afterwards we finalized the refinancing.
"The funds released by this loan will be used to continue our growth course and to realize new development projects, especially in the East European markets where double-digit yields can be generated," commented Eduard Zehetner, Chairman of the Executive Board of IMMOFINANZ Group.
The Golden Babylon Rostokino shopping center in Moscow was developed as a joint venture with Patero, a local firm, and opened in November 2009. An agreement to acquire the remaining 50% of the Golden Babylon Rostokino from the co-owner Patero was signed on 21 March 2012.
The Golden Babylon Rostokino shopping center is located in Sviblovo, a densely populated district in Moscow. With 168,000 m² of rentable space and 241,000 m² of total space, it is not only a flagship for the Moscow retail sector but also one of the largest shopping centers in Continental Europe. Over 500 shops are situated on two floors, and 7,500 parking spaces are available for customers.
The balanced tenant mix covers well-known local and international retail chains, including Media Markt, H&M, Inditex (Zara, Zara Home, Bershka, etc.), a Castorama building materials outlet, the Finnish department store Stockmann and the Russian food hypermarket O'key. This extensive offering is complimented by a cinema with 14 theaters and numerous gastronomy facilities. The shopping center currently has an occupancy rate of roughly 95%.
The transfer of the remaining shares in Golden Babylon Rostokino is contingent upon the fulfillment of several conditions precedent, including the approval of the Russian antitrust authorities.
Source: IMMOFINANZ Group