Press release 03/06/2020

Baltika has handled the sale of brewery in Chelyabinsk

Baltika Breweries, a part of the , has sold property complex of its brewery in Chelyabinsk. Knight Frank St Petersburg was appointed to be the exclusive deal broker. Proceeds from the sale of brewery will contribute to Baltika business development.

As previously reported, Baltika has completed the sale of its brewery in Krasnoyarsk in February and has no plans to close other sites in the near future. Both plants were closed in 2015. At the moment the company aims to implement a new three-year strategy, which will help Baltika to strengthen its position in the highly competitive Russian market through reinforcement of key brands, innovations and focus on growing segments and channels, while maintaining tight control over costs.

Knight Frank St. Petersburg was chosen as a broker to sell the facilities in Chelyabinsk, and in 2019 the companies signed the contract.

Nikolai Pashkov, General Manager of Knight Frank St Petersburg: “We started working on property complex in the first quarter of 2019. We saw demand for it from small local companies, mainly industrial, whose requests were much smaller than the area of the complex. But for obvious reasons, our client was not interested in selling the property in parts. So, ultimately, the complex was bought by a local investor who will provide this area to the tenants. This confirms the trend of increasing interest in investments in the regions — the share of such transactions in 2019 increased to 7%, showing an increase of 2 percentage points compared to the results of 2018”.

The property complex in Chelyabinsk was bought by a local investor engaged in leasing out commercial real estate. The total area of the facilities in Chelyabinsk is 61 thousand square meters, the site covers 5.3 hectares. On the territory of the plant there are 12 operated buildings as well as railway tracks.

Fact sheet: Baltika Breweries, a part of Carlsberg Group is one of the leading Russian brewing companies, one of the largest producers of consumer goods in . Baltika owns 8

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factories in Russia and has a wide brand portfolio. The company is a significant part of the Carlsberg Group and its Eastern Europe region, which also includes , , and . Baltika Breweries is a leading exporter of Russian beer: more than 75 countries sell Baltika’s products. Thanks to the superior quality, Baltika brands gained more than 670 Russian and international awards in the professional and consumer competitions.

International consultancy company Knight Frank was founded in London in 1896 and is one of the leaders in the world market of commercial and residential property. Today Knight Frank, together with its strategic North American partner Newmark Grubb Knight Frank, has 512 offices in 60 countries. More than 19,000 employees support real estate transactions, providing agent and consulting services to private and corporate investors, tenants, developers and other market players. Since 1996, the company has been providing a full range of agent and consulting services in the Russian real estate market. For more information about the company, please visit knightfrank.ru.

For more information, please contact Aleksei Kolomentsev, Senior Public Relations Manager of Baltika Breweries LLC, [email protected] + 7 812 326 66 37 ext. 1921, +7-963-303-34-53;

and Olga Filatova, PR Manager at Knight Frank St Petersburg, [email protected], +7 (812) 363 22 22, +7 921-773-83-48.

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