Rostec is actively selling out non-core assets

Maxidom has already bought Rostec’s 7.5 ha land lot located on the territory of Kalinin Plant on the Vasilyevsky Island and will open here culture and business center. St. Petersburg DIY-retailer has bought enterprise property in Summer 2016 for RUB 1.26 billion and is planning to invest into the project additional RUB 3 billion.

The property complex of JSC Kalinin Plant which is a part of the established by Rostec Concern “Mechanical Engineering” is located on the Vasilyevsky Island at the address 1 Uralskaya St. An ammunition and items for strategic missile forces were produced here.

Most plant buildings – 60-70% – are considered cultural heritage sites and are under the protection of Committee on State Control, Use and Protection of Historical and Cultural Landmarks. Many of them are in dire state. The retailer is planning to preserve historic buildings to the maximum, to restore and to adapt to the modern use 70,584 sq. meters territory.

In total state corporation Rostec has planned to sell out in 2016 non-core assets approximately in the amount of RUB 10 billion. The selling is performed by RT-Design Technologies Company. First of all these assets include real estate and land lots, and also certain facilities which location and functionality are unprofitable.

The company has many liquid assets which are sold mainly in Moscow and Saint Petersburg. Non-core assets in other regions are currently unprofitable to sell. In 2016 Rostec is planning to hold an auction for selling two major facilities in the downtown of Moscow (Elektritchesky Pereulok) and in Moscow Region (Lubertsy) at the starting cost of RUB 3.5 billion and RUB 1.635 billion correspondingly.

The corporation work with non-core assets includes two key directions. The first direction – selling of non-core assets and further investing into more priority directions of activity, investment projects, improvement of Rostec strategic assets, the second direction – implementation of investment and construction projects.

The selling of non-core assets in the previous year allowed Rostec to gain RUB 5.8 billion that is twice the amount of 2014 as per state corporation calculation.