Sberbank and Rostelecom increase capital of the joint real estate sub-fund to RUB 10.4 billion
Moscow, Russia – December 26, 2018 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that it has signed an agreement on a par with Sberbank to increase the capital of the Telecom 5 commercial real estate sub-fund joint venture (JV) to RUB 10.4 billion. The transaction was organised with the participation of Sberbank Investments LLC, a 100% subsidiary of Sberbank. Sberbank and Rostelecom will make an additional contribution of RUB 0.8 billion each to the JV, maintaining 50% stake in the company.
The main objective of the capital increase is to purchase 5 additional real estate properties with a total area of 26,000 square meters in Moscow, Yaroslavl, and Rostov-on-Don. This will help to further leverage the investment and development potential of these properties.
Sberbank and Rostelecom established the JV in December 2016 with acquisition of the first properties, and further extended cooperation in December 2017 by increasing the JV’s capital and portfolio. As part of the strategy to leverage the portfolio’s investment and development potential, on December 17, 2018 the JV has finalized the deal on sale of the property at Bolshaya Morskaya st. in Saint Petersburg to Imperia Group.