Kesko to continue preparations for real estate arrangement
(Thomson Reuters ONE) -
KESKO CORPORATION STOCK EXCHANGE RELEASE 28.11.2014 AT 09.00 1(1)
Kesko to continue preparations for real estate arrangement
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.
Kesko Corporation
Merja Haverinen
Vice President, Group Communications
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main news media
www.kesko.fi
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Source: Kesko Oyj via GlobeNewswire
[HUG#1875057]
Unternehmensinformation / Kurzprofil:
Datum: 28.11.2014 - 08:03 Uhr
Sprache: Deutsch
News-ID 355889
Anzahl Zeichen: 3023
contact information:
Town:
Kesko
Kategorie:
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