Following the approval by the Russian antitrust authorities, the purchase of the remaining 50% of the Golden Babylon Rostokino shopping center by IMMOFINANZ Group was finalised on 16 May. The agreement on the acquisition from the co-owner Patero was signed in March, whereby the parties have agreed not to disclose any information on the purchase price.
We are pleased to have already completed the acquisition of the Golden Babylon Rostokino shopping center. The agreement with our joint venture partner Patero over the full takeover of the Golden Babylon Rostokino was signed only recently in March. The quick finalisation of this transaction will now allow us to include the total rental income from the Golden Babylon Rostokino in our books sooner than expected and, in this way, make an important contribution to improving our operating results, commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group.
The Golden Babylon Rostokino shopping center was developed as a joint venture with Patero, a local firm, and opened in November 2009. It is the most profitable shopping center in the IMMOFINANZ Group portfolio. In order to repay the development financing provided by the parent company, IMMOFINANZ Group concluded a long-term financing agreement with the Russian Sberbank in March that covers a maximum volume of USD 715 million. The Golden Babylon Rostokino is located in the densely populated Sviblovo district of Moscow. With roughly 168,000 sqm of rentable space and 241,000 sqm of total space, it is not only a flagship for this citys retail sector but also one of the largest shopping centers in Continental Europe.
