Stockmann on Tuesday announced it will divest its shopping centre in St. Petersburg, Russia, to PPF Real Estate.
The Nevsky Centre and its owner, OOO Stockmann Nevsky Centre, will change hands at a price of 171 million euros, 10 million euros less than the balance sheet value of the property, according to a press release from the Finnish department store retailer.
Lauri Veijalainen, the CEO of Stockmann, says the retailer is pleased to have found a buyer that is committed to developing the centrally located shopping centre further.
“The divestment enables Stockmann to fully focus on developing its department store properties in Finland and the Baltic countries. At the same time, it gives us financial flexibility and a possibility to deleverage the group’s balance sheet,” he tells.
Stockmann revealed its objective is to close the transaction by year-end but reminded that it is still subject to approval from the Russian Federal Antimonopoly Service. The divestment, it added, will have a net positive cash flow effect of roughly 139 million euros.
Aleksi Teivainen – HT