Sonae Website - November 18, 2010
Sonae informs that, since the last announcement made on 20 May, Sonae RP has concluded further sale & leaseback transactions for a total consideration of 71 million euros generating an aggregate book gain of 29 million euros. The blended average initial yield on these transactions was 6.8% on a ‘Triple Net’ (1) basis.
The third quarter accounts of Sonae reflect a book gain of 3 million euros, resulting from the sale and leaseback of 2 Modelo stores, for a total consideration of 18 million euros, and the promissory agreement to complete the sale and leaseback of a further Modelo store by end March 2011, with a prepayment of 2 million euros.
The fourth quarter accounts of Sonae will reflect the sale and leaseback of 2 Modelo stores and 3 stores within Leiria Shopping (Continente, SportZone and Worten), for a total consideration of 44 million euros, and assuming the completion of the above mentioned promissory agreement of a Modelo store, a consideration of an additional 7 million euros.
These transactions will generate an estimated book gain amounting to 26 million euros. These transactions are consistent with the announced strategy to release capital from Sonae RP’s retail real estate assets, while maintaing adequated operational flexibility.
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