ROSTELECOM PJSC (RKMD)
Rostelecom sells properties in the Central Telegraph historical building
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.
Mikhail Oseevsky, CEO & President of Rostelecom, commented: "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.
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PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to over 13 million users and pay-TV services to more than 10.2 million families, over 5.4 million of which are subscribed to Rostelecom's IPTV services on a national level.
In the six months of 2019, the Group generated RUB 158.8 billion of revenues, RUB 53.5 billion of OIBDA (33.7% of revenue) and RUB 10.0 billion of net income.
The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centers and cloud computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.
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Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:
Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.
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