Austrian property group Immofinanz said it is expecting some €400 mln of write-downs on its Russian portfolio after having commissioned a new valuation in view of the recent significant deterioration in economic conditions in the country.
Austrian property group Immofinanz said it is expecting some €400 mln of write-downs on its Russian portfolio after having commissioned a new valuation in view of the recent significant deterioration in economic conditions in the country.
CBRE, the newly appointed appraiser for the CEE portfolio, was mandated to carry out a special appraisal of Immofinanz's Russian properties as of 31 January 2016.
'The first indications from the appraiser’s valuation lead to expectations of a foreign exchange-adjusted write-down of €400 mln to the five Moscow retail properties in the third quarter of 2015/16,' the company said in a statement.
The carrying amount of these five properties totalled €1.57 bn as of 31 October 2015.
The Russian economy is suffering from low oil prices and international sanctions. Immofinanz has been forced to give discounts to tenants in Moscow hurt by the weak rouble, who have to pay their rents in dollars.
The company, which is due to publish its third-quarter results on March 16, said its dividend policy would remain unchanged.
