Kesko Website - July 1, 2010
Kesko has today made an agreement on the sale of ten properties with Ilmarinen Mutual Pension Insurance Company and Kruunuvuoren Satama Oy, a joint venture established by Ilmarinen, the Kesko Pension Fund and Kesko Corporation. The debt-free selling price of the properties totalled €107.5 million and Kesko will recognise the total gain of €47.4 million on their sale. In the same connection, the Kesko Pension Fund sold seven retail store properties owned by it to Kruunuvuoren Satama Oy.
According to the agreements made today, Kesko sold eight retail store properties used by the Kesko Group to Kruunuvuoren Satama Oy. In addition, Kesko sold two other properties to Ilmarinen today. The €47.4 million gain on the sale of the properties will be treated as a non-recurring item in Kesko's operating profit for the third quarter of the year, with the exception of a non-recurring €2.3 million gain on the sale, which will be recognised for the fourth quarter.
Kesko Group companies leased the properties sold by Kesko to the joint venture and Ilmarinen for the Kesko Group companies' use mainly on 15-year leases with extension options. Kesko Group's lease liabilities for the real estate covered by these leases amount to some €63 million. At the same time, Kesko Group companies also leased from Kruunuvuoren Satama Oy the retail store properties it had bought from the Kesko Pension Fund under similar terms. The total lease liabilities of the Kesko Group on properties used by it increase by some €120 million. Lease liabilities are not classified as finance leases.
A separate stock exchange release has been published today on the establishment of the joint venture, Kruunuvuoren Satama Oy.
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