Kesko looks into setting up a real estate investment trust
(Thomson Reuters ONE) -
KESKO CORPORATION STOCK EXCHANGE RELEASE 29.11.2013 AT 09.00 1(1)
Kesko is looking into selling some of the store sites it owns to a trust to be
set up with Kesko as one of its significant investors. Kesko Group would
continue its operations in the store sites under long-term leases signed in
connection with their sales to the trust.
Kesko's objective is to set up a trust of mainly Kesko-owned store sites and
shopping centres in Finland, Sweden and Russia with a maximum fair value of
approximately ?750 - 950 million. The trust is planned also to be made available
to private investors. Listing of units is also being assessed.
The possible trust is expected to be launched in the course of 2014.
The sale of store sites to the trust is estimated to generate a significant non-
recurring gain, the amount of which depends on the properties sold and return
requirements applied to them. These will be specified at a later stage in the
assessment.
Launching the real estate investment trust 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. Moreover, starting a real
estate investment trust is subject to the authorisation of the Financial
Supervisory Authority.
As at 30 September 2013, the carrying amount of real estate owned by Kesko was
?1.4 billion and the nominal value of lease commitments was ?2.4 billion. The
total area of store sites owned and leased by Kesko was approximately 4.1
million square metres. For the next five years, Kesko's capital expenditure in
store sites will total approximately ?1.0 - 1.5 billion, with an emphasis in
Russia in particular.
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.
Kesko Corporation
Merja Haverinen
Vice President, Corporate Communications
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kesko Oyj via GlobeNewswire
[HUG#1746555]
Unternehmensinformation / Kurzprofil:
Datum: 29.11.2013 - 08:01 Uhr
Sprache: Deutsch
News-ID 321238
Anzahl Zeichen: 2944
contact information:
Town:
Kesko
Kategorie:
Business News
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