OREANDA-NEWS. July 14, 2010. EPH announced the purchase of the remaining 50% stake in a 16,500 sqm office center located in central Moscow, called Geneva House, reported the press-centre of OTKRITIE Financial Corporation.

View: The purchase price was not disclosed. An external valuation put the property at USD57m as of YE09, which would put the purchase price of the remaining 50% stake somewhere in the neighborhood of USD30m. The company had USD4.6m in cash as of YE09, hence the purchase is likely to be financed with new debt. The property should start producing income in 2011. The purchase should raise RGI's NOI by 16%, which is positive for RGI's operating performance. 

Valuation and Action: The stock trades at a P/NAV of 0.32x, versus 0.51x for its Russian peers. At present, we do not cover the stock.