Saturday, December 02, 2006

Konecranes Pursuing Sale Leaseback of Property Portfolio in Finland

Konecranes Web Site - November 30, 2006

Konecranes return on capital employed is currently 26.6 percent, but its ambition level is higher. As part of its capital efficiency programme, Konecranes is now also studying the possibility to release capital by selling real estate for the use of its rapidly growing core business.

The facilities in question, located in Hyvinkää and Hämeenlinna, Finland, which are currently mainly in production, warehousing and office use, comprise approximately 73,000 square metres on a total land area of roughly 240,000 square metres.

No decision to sell the real estate has been made. The decision will be made based on the outcome of the study. After the potential transaction, the companies currently operating in the facilities are planned to continue their normal operations under operating lease agreements. The possible agreements could be finalized during the first quarter of 2007.

Advium Corporate Finance, eQ Bank Ltd. is acting as Konecranes’ financial advisor, and will also determine the market value of the properties. Sphere: Related Content

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