ENR Russia Invest SA (“ENR”) achieved consolidated net profit of CHF 6.23 million for the year ended December 31, 2019 (2018: CHF 4.44 million consolidated net loss). At the end of 2019, the consolidated net asset value reached CHF 48.13 million (2018: CHF 40.47 million).
Vacancies at the Petrovsky Fort decreased with the improvement of the Saint Petersburg rental market in 2019. An investment improvement program is underway at the business center. ENR also launched a number of new initiatives in 2019 (new strategy to improve the combination of tenant businesses focused on retail and services; a new flagship bistro food hall and a gastro-bar restaurant was opened; and an interactive new look website is in place – www.petrofort.ru). The value of the business center increased by 12.03% in rubles in 2019. With a stronger ruble at the end of the year, there was a further increase in value of 11.23% in francs. UniCreditbank’s refinanced loan to the business center reduced interest costs by 50% in 2019.
At the Turgenevskaya car park in Moscow, the rental of parking spaces for businesses and their employees improved in 2019. For the Zaytsevo residential real estate development near Moscow, ENR recorded a claim for the amounts invested and the penalties following the liquidation of the promoter. ENR has a mortgage on the land where its apartments were to be built.
During the reporting period, ENR generated CHF 4.65 million through the sale of fixed income instruments and CHF 1.45 million through the sale of listed equity securities. This product was used to finance a new private equity investment.
ENR, with a Russian partner, acquired a greenhouse complex for the production of flowers in Russia (near Moscow). The complex is well designed and equipped with five stand-alone greenhouses. Investments are needed to maintain or replace parts of engineering systems, buy flowering plants and bulbs, and finance operations until the business has a positive cash flow. As of December 31, 2019, ENR had invested 342.91 million rubles (5.35 million francs). It is expected that ENR and its partner could eventually invest around 10 million francs each (less if Russian bank financing is obtained under Russian agricultural incentive programs).
In 2019, the Russian economy grew by 1.2% and the Russian Central Bank continued to cut key rates (currently 6%). Oil and gas prices remain essential to the outlook for the Russian economy. The rise in oil revenues has a positive effect on the sentiment of Russian consumers and investors, stimulating domestic demand and consumption. In March 2020, OPEC + group talks failed to reach agreement on reducing production volumes to curb the drop in demand due to the coronavirus epidemic. Saudi Arabia responded by reducing its crude oil prices and said it would increase oil production. Oil prices then fell sharply, causing the ruble to depreciate sharply against the CHF (around 23% to date).
http://www.enr.ch/Download.aspx?mode=pressrelease&id=u6Hp230k%2fsclzu4KKdPvag%3d%3d“data-reactid =” 22 “> The ENR annual report is available from today on the ENR website at http://www.enr.ch/Download.aspx?mode = pressrelease & id = u6Hp230k% 2fsclzu4KKdPvag% 3d% 3d