Norwegian investor Storm Real Estate is hoping to raise up to NOK 506 mln (EUR 65 mln) in a capital increase to be launched on Oslo's stock exchange next month. The fund, which is managed by Storm Capital Management, said in a statement that it has applied for the listing of 23 million new shares in a move which will allow it to raise fresh equity for investment in Russian commercial property.
Norwegian investor Storm Real Estate is hoping to raise up to NOK 506 mln (EUR 65 mln) in a capital increase to be launched on Oslo's stock exchange next month. The fund, which is managed by Storm Capital Management, said in a statement that it has applied for the listing of 23 million new shares in a move which will allow it to raise fresh equity for investment in Russian commercial property.
The company said that 'the current low valuations of commercial real estate in Russia present opportunities for investors with equity and good financial relationships.' 'Office values are down between 30% to 70% since their peak in mid-2008 and the main leading indicators are pointing towards a recovery', it added. 'We believe that now is the time to invest in Russian commercial real estate.'
The company intends to issue new shares at a price range of NOK 14.00-22.00 per share, representing a premium of up to 63% on the current share price.
Storm Real Estate currently owns two business centres in Russia; the Gas Field complex offering 16,000 m2 in Moscow and Grifon with 7,000 m2 of space in St. Petersburg.
