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ROSTELECOM PJSC (RKMD)
Sberbank and Rostelecom to increase capital of sub-fund for real estate
redevelopment and management to RUB 8.8 billion
26-Dec-2017 / 12:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Sberbank and Rostelecom to increase capital of sub-fund for real estate
redevelopment and management to RUB 8.8 billion
December 26, 2017, Moscow - Sberbank and Rostelecom have signed an agreement
on a parity basis to increase the capital of the Telecom 5 commercial real
estate sub-fund joint venture (JV) to RUB 8.8 billion. The transaction was
organised with the participation of Sberbank Investments LLC, a 100%
subsidiary of Sberbank. Sberbank and Rostelecom will make an additional
contribution of RUB 2.4 billion each to the JV, maintaining 50% stake in the
company.
The main objective of the capital increase is to purchase 22 additional real
estate properties with a total area of 139,000 square meters in Moscow, the
Moscow Region, and Saint Petersburg. This will help to further realise the
investment and development potential of these properties. The portfolio
managed by the JV has been increased to 38 properties in 11 Russian cities.
The total area of the properties owned by the JV now exceeds 239,000 square
meters. These properties previously belonged to Rostelecom.
Sberbank and Rostelecom established the JV on the basis of the first 16
properties in December 2016. The parties signed a letter of intent with
LEGENDA Intelligent Development on the implementation of a development
project at one of the properties in Saint Petersburg. In addition, more than
10 offers have been received from investors to purchase or jointly develop
properties accounting for about 40% of the real estate portfolio of the JV,
including the transaction of 2017.
James Corrigan, Managing Director at Sberbank Investments LLC, commented:
"Rostelecom is one of our key clients and a long-term partner . This
transaction is a great example of our partnership in a non-core business
area. The project proved attractive for Sberbank clients, who acted as
investors, for example, LEGENDA Intelligent Development. These developments
show that the strategy is successful and this is a positive signal for our
business and overall for the Russian market."
Dmitry Kurakin, Vice President and Administrative Director of Rostelecom,
said: "We are moving forward with confidence, and by participating in this
project, we can try a fundamentally new model for monetization of
Rostelecom's extensive real estate assets. Given today's sluggish market
conditions, it is rather difficult to employ traditional methods such as the
release and selling. Therefore, the accumulation of assets with the
development potential through external projects launched together with a
reputable financial partner allows us to create a professional asset
management team and to find ways to organise the turnover of the properties
in the most appropriate way, including, in some cases, maintaining
Rostelecom's shareholding in such properties. I believe that our companies
will see the results from this joint project next year."
# # #
Rostelecom (www.rostelecom.ru [1]) is one of the largest national
telecommunications operators in Russia and Europe. The Company operates in
all segments of the telecommunications market and covers millions of
households in Russia.
Rostelecom is an undisputable leader of the broadband and pay-TV markets in
Russia with over 12.7 million fixed-line broadband subscribers and over 9.7
million pay-TV subscribers, over 4.7 million of which are subscribed to
Rostelecom's IPTV services.
The Group is a market leader in providing telecommunications services to
government bodies and corporates of all levels.
Rostelecom is an important innovator that provides solutions in the field of
E-Government, cloud computing, healthcare, education, security and housing &
utility services.
Sberbank is Russia's largest bank and a leading global financial
institution. Sberbank holds almost one third of aggregate Russian banking
sector assets, it is the key lender to the national economy and the biggest
deposit taker in Russia. The Central Bank of the Russian Federation is the
founder and principal shareholder of Sberbank owning 50% of the Bank's
authorized capital plus one voting share, with the remaining 50% held by
domestic and international investors. Sberbank has more than 145 million
customers in 21 countries. Sberbank has the largest distribution network in
Russia with almost 15,000 branches, and its international operations include
UK, US, CIS, Central and Eastern Europe, India, China, Turkey and other
countries.
The Bank holds the general banking license No.1481 issued by the Bank of
Russia. Official websites of the Bank: www.sberbank.com [2]
(Sberbank Group website), www.sberbank.ru [3].
ISIN: US7785291078
Category Code: MSCH
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 5053
End of Announcement EQS News Service
641805 26-Dec-2017
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(END) Dow Jones Newswires
December 26, 2017 06:00 ET (11:00 GMT)
