Arricano acquisition to ease Crimean difficulties

25th Apr 2016 10:51

(ShareCast News) - Ukraine real estate developer and shopping centre operator Arricano made a quick-fire purchase on Monday, in a bid to make the management of its Crimean property more efficient.The AIM-traded company had struggled to operate effectively in the region since its virtual annexation by Russia as part of the ongoing conflict between the two nations.On Monday, it confirmed an agreement to purchase the Russian-incorporated Green City from Retail Real Estate for a nominal consideration of just $1,560 (£1,081).Green City has been dormant for a number of years, with its only assets or liabilities being tax losses of RUB 1.2bn (£12.48m) and loans due to Filgate Credit Enterprises amounting to $22.6m.Arricano's board said it has entered into a deed of agreement with Filgate, under which all amounts due to Filgate are assigned to Arricano for a nominal consideration of $2.The acquisition was conditional on that assignment.