Rostelecom sells properties in the Central Telegraph historical building
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11.09.2019
Moscow, Russia – September 11, 2019 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its subsidiary, Central Telegraph PJSC, has sold properties at 7, Tverskaya street, Moscow, with a total area of 35,198.7 square meters and the surrounding parking area, to one of the largest investment companies for RUB 3.5 billion (including VAT). A sales contract has been signed between the parties.
The properties of Central Telegraph were put up for sale at the beginning of June 2019. The sale was executed via an open auction through the “Sberbank AST” platform and biggest consultancy firms such as CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank and PwC were involved to bring maximum transparency, awareness and openness to the deal process, while opening the tender procedure to the widest number of potential buyers.
The asset price was set based on the independent assessment by Ernst & Young Audit and Consulting, as well as the supported opinions of the largest brokerage firms.
With only one bidder having submitted an auction offer, the property owner signed the sale agreement with the only participant, which was introduced by PwC.
“Rostelecom continues its efforts to improve internal business efficiencies and the optimisation of the Company’s real estate portfolio forms part of this overarching strategy. The sale of properties at 7, Tverskaya street completes the project launched by our teams to realise the Central Telegraph group of buildings at the highest value in the current market conditions. The project was challenging, and I am delighted that we managed to strike this important deal. We are confident that as the new owner, the largest investment house has all needed resources to realise the potential of this iconic property.”
The Company’s real estate portfolio currently includes approximately 20,000 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 sale of Rostelecom’s properties is available on special platforms, and professional market players are involved to ensure maximum transparency and openness to the deal procedure, while providing better access to potential buyers and ultimately leading to lucrative deals. In Moscow, Rostelecom has recently sold office buildings in the Zubovsky square, on 1st Tverskaya-Yamskaya street, Nikitsky lane and other properties.