Kesko Agrees to EUR 200 Million Sale Leaseback of 77 Stores in Finland

Kesko Web Site - February 16, 2004

Kesko has today agreed to sell 77 retail properties in various parts of Finland to Niam Retail Holding Finland AB. The sale price is over EUR 200 million. Kesko Group's gain on the disposal is EUR 99.8 million.

In addition to real estate owned by Kesko Group, 15 real estate properties owned by the Kesko Pension Fund have also been sold at the same time. All the above premises have been leased back for the use of Kesko's division parent companies under 5-year or 10-year lease agreements with extension options.

Kesko Group's lease liabilities, covering all properties now leased and totalling approximately EUR 144 million, are not classified as finance leases. Lease liabilities concerning the real estate sold by Kesko Group amount to EUR 118 million.

Out of the 77 real estate properties covered by the deal, 57 are used by K-food store chains, 14 by the K-rauta and Rautia chains, four by the K-maatalous chain and two by the chain of Anttila department stores. The concluded deal will cause no changes in store operations. The total area of the real estate sold by Kesko Group is approximately 160,000 sq.m.

The sale of real estate aims at enhancing the use of Kesko Group's capital. The assets obtained from the sale will be used to strengthen the store network in Finland and other countries, to expand the Group's international business operations and for rearrangements of long-term finance. Closing of the transaction is is expected to occur in early March. Sphere: Related Content