Fort Group buys IMMOFINANZ Moscow retail portfolio for $1b

Austria-based IMMOFINANZ has agreed to sell its five Moscow shopping centers to Fort Group, a St. Petersburg commercial real estate developer, for €901 million ($1.05 billion).

“The ongoing difficult market environment in Russia has had a substantial negative effect on the Group’s financial and earnings position during the past financial years. As previously announced, we are now selling the retail properties in Russia in line with our corporate strategy. This transaction will immediately recover equity and significantly reduce our financial liabilities and average financing costs. Moreover, the sale will eliminate any further burden on the liquidity through equity contributions for the retail portfolio in Russia,” commented Oliver Schumy, CEO of IMMOFINANZ, on the transaction. “IMMOFINANZ can now concentrate on further growth to become one of the largest players on the commercial property market in Europe.”

The sale is part of its planned merger with Austr