Stockmann to Sell Nevsky Centre
Finland Stockmann plc has signed an agreement to sell its Nevsky Centre shopping centre property in St. Petersburg, Russia, to PPF Real Estate for a purchase price of EUR 171 million. The value of the Nevsky Center property in the balance sheet on 1.1.2018 was EUR 181 million. The transaction includes Stockmann’s fully-owned Russian subsidiary, OOO Stockmann Nevsky Centre, which owns 100% of the Nevsky Centre property. The closing is subject to approval from the Russian Federal Antimonopoly Service. The
The divestment has a positive cash flow effect after taxes of approximately EUR 139 million. The divestment will lower Real Estate division’s EBIT annually by EUR 17 million, which is partly offset by the Group’s reduced financial costs.
”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.
The Nevsky Centre opened in November 2010, and has today over 90 retail and office tenants with a gross leasable area of 46 000 square metres. The anchor tenant of the shopping centre is AO Stockmann (Reviva Holdings Limited) which has owned the Stockmann department stores in Russia since 1 February 2016. After the divestment of Nevsky Centre, the Stockmann Group has no longer any own operations in Russia.