Helsinki, Finland, 2014-11-28 — /EPR Retail News/ — Kesko continues the preparation of a real estate arrangement. The intention is to sell some of the store sites it owns to a joint venture to be set up instead of a real estate investment trust planned earlier. The arrangement is expected to be implemented during the first part of 2015.
Kesko’s objective is to set up a limited liability company (joint venture) to own and manage mainly Kesko-owned store sites and shopping centres with Kesko as one of its significant investors. If the joint venture is set up, Kesko Group would continue operating on the store sites under long-term leases signed in connection with their sale.
The fair value of store sites planned to be sold to the joint venture from Finland and Sweden has been specified at a maximum of around €670 million. Previously, a portfolio of store sites in Finland, Sweden and also Russia with a maximum total fair value of around €750-950 million was examined.
Investors and finance providers have shown interest in the joint venture. Launching the joint venture depends, in addition to investor interest, on whether it is possible for Kesko to achieve such terms and conditions in the arrangement that are economically justifiable for it, taking the Group’s strong financial position into account.
The arrangement is expected to be implemented during the first part of 2015, while it was earlier expected to be launched in the course of 2014.
If implemented, the sale of store sites is estimated to generate a significant non-recurring profit, the amount of which will be specified as the examination progresses.
The preparations to set up a real estate investment trust were announced in a stock exchange release on 29 November 2013.
Further information is available from Arja Talma, Senior Vice President, Store Sites and Investments, tel. +358 105 322 205 and Jarkko Karjalainen, Investment Director, tel.+358 105 322 694.
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