STOCKMANN Oyj Abp, interior Information 21.3.2022 at 9:00 a.m. EET
Stockmann has today concluded, in line with the company’s restructuring programme, the sale of the property of its department store in downtown Helsinki to Keva Pension Fund. The value of the transaction is 400 million euros, of which approximately 391 million euros will be paid as part of the transaction. The remaining part will be taken into account in the rent over the next few years.The net yield is approximately 4.2%. The sale is subject to customary closing conditions and Stockmann expects the sale to close by the end of April 2022 at the latest. Stockmann will use the proceeds from the sale of the building to fully repay secured restructuring debts of €342.6 million and undisputed unsecured restructuring debts of €21.8 million.who are currently subject to the corporate restructuring payment program. Stockmann also has an unsecured restructuring debt which remains conditional, maximum amount or disputed, the amount of which subject to the payment program will be confirmed at a later date.
Stockmann will continue its department store operations throughout the building under a long-term sale-leaseback agreement to be entered into with the new owner. Leases with Stockmann tenants will continue with the current concept.
“We are delighted to have found a stable and reliable domestic owner for the property. The department store building in downtown Helsinki is iconic and has a great location, which made the sale of the property easier. “, said Jari Latvanen, CEO of Stockmann. .
“The Stockmann property is a unique, high-quality entity, where we see an investment opportunity with stable returns and development opportunities. The value property in a central location is a good addition to Keva’s growing property portfolio. It is in line with Keva’s investment strategy to invest for the long term in objects that retain their value and provide a stable return,” says Jaakko Kiander, CEO of Keva.
The department store in downtown Helsinki was designed by architect Sigurd Frosterus and has a total leasable area of approximately 51,500 square meters. The building was completed in 1930 and was later extended in its entirety.
Keva is a public sector pension provider and Finland’s largest employee pension institution with a total of 1.3 million private customers. The value of Keva’s investment assets at the end of 2021 was approximately €67 billion.
A press and analyst conference will be held today, March 21, 2022 at 10:00 a.m. via live webcast, which can be followed by this link.
Further information :
Jari Latvanen, CEO of Stockmann, tel. +358 9 121 5606
Jaakko Kiander, CEO of Keva, tel. +358 20 614 2097
Stockmann Oyj Abp published this content on March 21, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on March 21, 2022 07:17:04 UTC.