Russian company Fortgroup is reportedly the buyer of Immofinanz's Russian retail real estate portfolio valued at some €1 bn.
According to news agency Reuters, St Petersburg commercial real estate developer Fortgroup is close to agreeing a deal with Immofinanz to acquire the five shopping centres in Moscow.
Immofinanz said earlier this week that it was 'in advanced talks with one bidder for its retail properties in Moscow', adding that the key conditions are still to be finalised and that the process included other prospective buyers.
Immofinanz plans to complete the sale of its Russian portfolio by the end of 2017 in a move which is a precondition of its planned merger with fellow Vienna-listed real estate company CA Immo.
The company has been writing down the value of its Russian assets significantly over the past two years.
Valued at €1.57 bn as of 31 October 2015, the properties lost some €400 mln in value in the first quarter of 2016 after Immofinanz commissioned a new valuation in view of the significant deterioration in economic conditions in the country.
The portfolio currently has a book value of around €976 mln and €675 mln in debt.
Commenting on the planned sale, Immofinanz said that the assets have a different 'portfolio dynamics and a higher risk profile'.
Immofinanz has been reorganising in recent years to focus on developing and owning offices and its Stop Shop and VIVO! retail brands in eight core markets: Austria, Germany, Poland, the Czech Republic, Slovakia, Romania, Hungary and Moscow. This strategy has led to the spin-off and listing of its residential business Buwog, and the sale of its logistics holdings to Blackstone for €536 mln in February of this year.
The company also sold a portfolio of small retail assets in Austria earlier this year for an undisclosed amount.
