August 21, 2017 / 2:33 PM / a month ago

European developer Atrium puts Russian malls up for sale -sources

MOSCOW, Aug 21 (Reuters) - European property investor Atrium European Real Estate has put its Russian assets up for sale, sources at three property consultancies and a real estate developer said on Monday.

The company has been reviewing its Russian operations since 2014, when rental incomes were squeezed after the Russian economy was hit hard by a drop in oil prices and the rouble, as well as Western sanctions over Moscow’s role in the Ukraine crisis.

Atrium, a subsidiary of Israel’s largest real estate developer Gazit-Globe, is now actively looking for buyers for its Russian malls, the sources said.

A spokesman for the company declined to comment.

The company had said in a financial report this month that sentiment was improving in Russia after the recession had ended but concerns were lingering because of the volatility of the nation’s currency.

Atrium has seven shopping malls in Russia, two of which are in Moscow, with a gross lettable area of 241,400 square metres.

These assets had a market value of 289 million euros ($340 million) at June 30, representing about 11 percent of the company’s total portfolio, according to company data.

The company also has two land plots in Russia worth 11.6 million euros.

Austrian real estate company Immofinanz has said that it plans to sell its Russian portfolio by year-end. ($1 = 0.8501 euros) (Reporting by Olga Sichkar and Maria Kiselyova; Editing by David Goodman)

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