Under its non-core asset strategy, VTB Bank signed a purchase agreement on Nevsky Passage shopping mall in St. Petersburg with Jensen Group.
Nevsky Passage was the primary collateral under the loan to Russian Land Limited. In 2009, the company accumulated overdue debt under the loan. To settle the debt, VTB Bank, among other actions, sold the pledged asset. The parties expect to make settlements related to the deal in the next few months.
“We have been working on this transaction for two months, and we are satisfied with the result. The amount of transaction will not only allow VTB to discharge the debt of Russian Land Limited but also gain some profit from this project”, Andrey Puchkov, Deputy President and Chairman of VTB Bank Management Board, said.
The main objective of VTB in handling its non-core assets is to efficiently sell them in order to return the investment (loans and direct investment in share capital). The timing of such sales depends in the availability of interested solvent investors in the market. Until then, the Bank keeps such assets on its balance and manages them, increasing capitalization.
Nevsky Passage shopping mall is one of the most popular trading houses in St. Petersburg.
Nevsky Passage is a complex comprising two buildings with a total area of 21,496.8 sq. m. One of the buildings (area: 13,309.4 sq. m) faces Nevsky Prospekt, while the other (area: 8,187.4) faces Italyanskaya ul.