PPF Real Estate acquires Nevsky Centre in St. Petersburg for €171m (RU)

PPF Real Estate acquires Nevsky Centre in St. Petersburg for €171m (RU)

Stockmann has signed an agreement to sell its Nevsky Centre shopping centre property in St. Petersburg, Russia, to PPF Real Estate for €171m. The closing is subject to approval from the Russian Federal Antimonopoly Service. The compy expects to close the transaction and transfer the ownership of the company by the end of 2018. The divestment will lower Real Estate division’s EBIT annually by €17m, which is partly offset by the group’s reduced financial costs.

 

Open since November 2010, The Nevsky Centre totals 46 000m² and has over 90 retail and office tenants. The anchor tenant of the shopping centre is AO Stockmann (Reviva Holdings Limited) which has owned the Stockmann department stores in Russia since February 2016. After the divestment of Nevsky Centre, the Stockmann Group has no longer any own operations in Russia.

 

”We are very pleased to have found a professional real estate investor as a new owner for Nevsky Centre, committed to develop further this great shopping centre in the heart of St. Petersburg. The divestment enables Stockmann to fully focus on developing its department store properties in Finland and the Baltic countries. At the same time, it gives us financial flexibility and a possibility to deleverage the Group’s balance sheet," says Lauri Veijalainen, CEO of Stockmann.

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