Germany’s Otto Group publicly exited Russia a year ago, selling off its local footprint and exiting entirely from the market in 2022. The transaction involved the disposition of two warehouse complexes located in the Tver region, a portfolio once operated under Otto’s Russian brands. The buyer, identified by multiple sources and confirmed by the operator of multi‑temperature storage facilities, Multicold, is expected to be RAM Group’s logistics arm. The sale marks a significant chapter in Otto’s long history in Russia, which began in 1990 under brands such as Otto, Quelle Russia, and Bonprix. While Otto and Quelle stores had already faced contractions in 2018, the decision to leave Russia was completed in the following years, reshaping the company’s regional strategy and footprint. Multicold’s involvement aligns with RAM Group’s broader objective to expand its network of refrigerated distribution centers. The precise terms of the deal were not disclosed by Otto, and Multicold did not reveal the financial specifics beyond confirming the authenticity of the signing. Industry observers have speculated that the overall price could reach around 2.23 billion rubles, though some noted the possibility of a sizable discount on the assets. Such speculation reflects the market dynamics facing buyers who seek to capitalize on existing infrastructure while navigating post‑exit market conditions. (Kommersant)
According to experts consulted by Kommersant, the deal appears to be structured with considerations around the value of the physical assets and the potential for continued revenue streams. Part of the portfolio comprises roughly 7,000 square meters in one of the complexes, which has already seen a transfer of occupancy to the Ozon marketplace. The new operator confirmed this development to the newspaper, signaling a smooth transition in tenancy and ongoing utilization of the space. The remaining portion of Otto’s former real estate is expected to continue generating rental income, with specialists estimating annual returns near 322 million rubles, subject to market conditions and contractual terms with tenants. (Kommersant)
Otto Group’s Russian journey spans more than three decades during which it built a portfolio of brands and retail concepts. The group’s strategy in Russia featured a mix of direct operations and brand partnerships, with a footprint that included mail‑order activities and e‑commerce initiatives alongside physical stores. The 2018 retractions and the 2022 complete withdrawal reflect a broader retreat by several Western retailers from the Russian market, citing geopolitical and economic considerations. In the wake of the exit, assets such as the two Tver complexes have attracted attention from local developers and logistics operators seeking to leverage existing infrastructure for cold storage, cross‑docking, and regional distribution. (Kommersant)
Multicold operates as the local arm of RAM Group’s warehousing strategy, focusing on the development and management of multi‑temperature distribution hubs. This network is designed to provide refrigerated warehouse capacity that supports e‑commerce growth, food distribution, and other temperature‑sensitive supply chains. RAM Group has been active in building and leasing such facilities since 2011, aiming to create scalable, strategically located hubs across Russia that can accommodate expanding demand for rapid, climate‑controlled storage. The acquisition in Tver fits the broader plan to consolidate a robust, resilient cold‑chain network that can serve regional markets and enable efficient logistics operations for tenants. (Kommersant)