DGAP-News

IMMOFINANZ AG: IMMOFINANZ offers retail tenants in Russia temporary FX fixing

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate
IMMOFINANZ AG: IMMOFINANZ offers retail tenants in Russia temporary FX
fixing

25.12.2014 / 10:15

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IMMOFINANZ Group offers to the tenants in its five Moscow shopping centers
a general FX-fixing for their rents for a limited period of three months.
The fixation is based on an exchange rate of 40 Rubles for 1 USD or 50
Rubles for 1 EUR (which corresponds approximately to the exchange rate
level at the beginning of October 2014) and will last from January until
March 2015.

The offer is for those tenants where no individual agreements for a rent
reduction have been previously agreed. The offer also stipulates that
tenants fully repay any outstanding rents by the end of February 2015.

"We have always emphasized and also proven in the past that we support our
tenants as part of a long-term partnership. The sharp drop in the Ruble and
loss of purchasing power of Russian consumers have put many retailers under
pressure. Our offer for a temporary FX-fixing of rents will allow a quick
solution before year-end for those retailers with whom we haven't already
agreed on a temporary reduction", says Eduard Zehetner, CEO of IMMOFINANZ
Group. "We do not expect any significant improvement in the situation in
Russia over the short-term. However, we believe in the Russian market and
in Russia as an economic factor and we will overcome the current
difficulties together with our tenants."

The effects of these measures on the business development of IMMOFINANZ in
Russia depend on the acceptance of the offer by tenants and ongoing
exchange rate developments. Therefore it cannot be currently estimated. On
the one hand, these measures will lead to further temporary reductions of
rental income. On the other hand, tenants will have the opportunity to
repay outstanding rents at a more favorable FX rate than the current one.

IMMOFINANZ Group owns and operates five shopping center in Moscow with a
rentable space of close to 277.000 sqm, among them Golden Babylon Rostokino
and GOODZONE, which was opened in 2014.



On IMMOFINANZ Group
IMMOFINANZ Group is one of the leading listed commercial real estate
investors and developers in Central and Eastern Europe and is listed on the
leading ATX index of the Vienna Stock Exchange as well as on the Warsaw
Stock Exchange. Since its foundation in 1990, the company has developed a
high-quality portfolio that now comprises more than 470 properties with a