Rostelecom puts properties in the Central Telegraph premises up for sale
Moscow, Russia – June 6, 2019 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its subsidiary, Central Telegraph PJSC, has put up for sale its properties at 7, Tverskaya street, Moscow, with a total area of 35,198.7 square meters and the surrounding parking area.
The building was constructed in 1927 and is located in close proximity to the Moscow Kremlin, at the first line of Tverskaya street. A historic architectural landmark in Moscow, the building represents Russia’s zero mile marker, which is the starting point of all the country’s roads. It is situated within walking distance from 10 metro stations and connects 7 out of 12 metro lines.
The starting price was set at RUB 3.5 billion (including VAT) by the Board of directors of Central Telegraph PJSC, based on independent evaluations and opinions of recognized international brokerage firms.
The sale will be executed via open auction through the “Sberbank AST” platform. Property consultants such as Colliers International, JLL, Knight Frank, Cushman & Wakefield and advisory firms such as CBRE, PwC and RAD (Russian Auction House) will be involved to bring maximum transparency, awareness and openness to the deal procedure, while opening the process to the widest number of potential buyers.
“Having migrated to state-of-the-art communication technologies, Central Telegraph no longer requires the scope and scale of its existing area to operate, and funds raised from its sale will increase free cash flow which could in turn contribute to infrastructure investments. Previously, at the end of 2018, Central Telegraph completed the sale of a building on Nikitsky lane, and the proceeds will be paid out to shareholders as dividends.”
Rostelecom’s continued efforts to optimise its real estate portfolio via sale or lease agreements form part of its overarching strategy to enhance internal business efficiencies.
The Company’s real estate portfolio currently includes approximately 20,130 facilities with a total area of more than 8 million square meters. Almost half of this area is located in Moscow and Saint-Petersburg, and other cities with a population in excess of 100,000 people.
Information about the properties offered for sale is available on a special webpage http://realty.rostelecom.ru.