Sunday, March 19, 2006

NCC Completes $65 Million Sale Leaseback of Residential Complex in Berlin

Europe Real Estate - March 13, 2006

NCC, one of the leading construction and property development companies in the Nordic region, has concluded a sale leaseback agreement with the German finance group HSH Nordbank and their leasing affiliate AGV regarding properties in the Sonnengarten area, just outside Berlin. The sales price is approximately SEK 500 million ($65.4 million) and the parties will simultaneously sign an 18-year lease on the premises.

Sonnengarten is a well-established residential area situated in Glienicke-Nordbahn, north of Berlin and consists of approximately 30,000 square meters of residential space and 800 square meters of commercial premises distributed among a total of 23 properties. The 362 residential units and 13 commercial premises are located in a green environment, close to daycare centers, schools and the areas own shopping center. The area also has an underground car park with room for 169 vehicles.

According to the buyback option, NCC will be entitled to repurchase the entire property portfolio on predetermined terms and conditions after 10, 11 or 13 years. NCC will also have the right, but not the obligation, to repurchase the portfolio when the lease expires at the market value prevailing at that time. The sale is expected to be during the second quarter of 2006. Sphere: Related Content

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