Russia Warimpex withdraws from Russia

Investment & finance

31 October 2024

Opr./edited by JC

Mogilska 35 Office was opened by Warimpex in Krakow at the end of 2023

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Warimpex Finanz- und Beteiligungs has sold its last remaining project in Russia, the Airportcity St. Petersburg, and is therefore no longer active in the Russian market.

Warimpex has been active in Russia since the 1990s when it acquired its first hotel in Ekaterinburg. In the mid-2000s, the focus shifted
to St. Petersburg and the Airportcity, where the Airportcity Plaza Hotel was the first project to be completed. Subsequently, three office buildings and a multifunctional building for parking, storage and offices with a total of around 53,100 sqm of rentable space followed. Contracts were signed between Warimpex and a Russian buyer for the sale of all shares and shareholder loans. The transaction was completed today, and it was agreed not to disclose any details.

This transaction is expected to have a negative impact of around EUR 76 mln on the Warimpex Group results for the 2024 financial year. This result includes historical reserves from currency conversion already recognised in equity, so that overall, a decrease in group equity of around EUR 35 mln to around EUR 77 mln is expected.

With the start of the Ukraine conflict, it became increasingly challenging for us to continue operating our project in St. Petersburg. Most recently, we were at least able to continue our operating activities self-sufficiently via independent Russian subsidiaries. However, new developments on the existing land reserves were no longer an option. Due to the complex market conditions and the very specific transaction terms, withdrawing from Russia was extremely difficult. Despite these challenges, we are pleased to have found a solution that not only meets all requirements, but also allows us to push ahead with our projects in Poland at full speed and also to consider new ones.
Franz Jurkowitsch, Warimpex CEO

The withdrawal from Russia will free up both financial and human resources at Warimpex, which will now be deployed to Poland and Germany. Mogilska 35 Office was last opened in Krakow at the end of 2023. Also in Krakow, the Chopin Office and Coliving
project is already at an advanced planning stage. The building permission has been granted and completion is scheduled for 2026. New potential projects are also being examined.