Moscow, Russia - December 27, 2013 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that it has acquired 51% of the ordinary shares of CJSC Business Nedvizhimost ("Business Nedvizhimost" or "the Company") from CJSC MGTS-Nedvizhimost, for RUB 3.2 billion. The value of the stake is based upon an independent appraisal prepared by American Appraisal.
Business Nedvizhimost was established in September 2013, following a separation from CJSC MGTS-Nedvizhimost during its reorganisation. The Company's main areas of operation are property management and leasing. Business Nedvizhimost owns 76 real estate sites, which cover a total area of approximately 178,000 square meters, and were used by MGTS as automatic telephone stations (ATS) prior to the implementation of GPON (Gigabit-capable Passive Optical Network) technology. Located across Moscow, almost half of the sites, individually, cover a total area of less than 700 square meters, and all the buildings have an average depreciation of over 70%.
Business Nedvizhimost's assets will be mainly developed by Sistema's property development arm CJSC Leader Invest. For 2014, initial plans of Business Nedvizhimost include redevelopment of 15 sites, as well as an assessment of new rental opportunities.
Mikhail Shamolin, President and CEO commented:
"Sistema and its group of companies may have significant real estate potential. In 2013, we have established a special investment division within Sistema which will seek to develop and monetise some of these opportunities. We believe that Business Nedvizhimost's sites, despite their varied nature,offer attractive development opportunities. Using largely external financing, we plan to commence reconstruction of these former ATS into "business class" residential property in 2014."
For further information, please visit www.sistema.com or contact:
Tel.: +7 (495) 692 1100
Tel.: +7 (495) 730 17 05