KESKO PRESS RELEASE 24.05.2017 AT 9.00 1(2)
Kesko sold its properties in Estonia and Latvia
Kesko has sold seven store sites used by Kesko Senukai in Estonia and Latvia to the property investment company UAB Baltic Retail Properties. At the same time, Kesko has acquired a 10% shareholding in the property investment company.
UAB Baltic Retail Properties' main shareholder is CPA:17 - Global, a property investment fund managed by the US based W. P. Carey Inc., with a 70% ownership interest. The three owners of the property investment company remain in the company as minor shareholders with a total shareholding of 20%.
UAB Baltic Retail Properties has already earlier been an important lessor to Kesko Senukai in Lithuania. In connection with the arrangement, Kesko Senukai has once again leased store sites, which the investment company had already previously owned, as well as new store sites, which have now been transferred to the investment company for its use on 15-year leases with extension options.
The entire deal is valued at approximately €174 million. The selling price of the properties owned by Kesko was €64 million, generating a profit of €50 million on the divestment. Kesko Group's net cash inflow from the arrangement before tax is approximately €58 million. Kesko Group leases a total of 19 store sites from the property investment company and as a result of the arrangement, lease liabilities increased by approximately €124 million. The arrangement will not have any significant impact on profit.
Kesko Senukai is the Kesko Group company responsible for building and home improvement trade operations in the Baltics and Belarus. Kesko Senukai is the clear market leader in the in the region with 54 stores. In 2016, Kesko Senukai's sales were close to €600 million.
Further information:
Jukka Erlund, Executive Vice President, Chief Financial Officer, jukka.erlund@kesko.fi, tel. +358 105 322 113
Riikka Toivonen, Head of Financial Communications, riikka.toivonen@kesko.fi, tel. +358 105 323 495
Kesko Corporation
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Kesko and K-retailers form K Group, whose sales total over €13 billion. K Group is the third largest retail operator in Northern Europe and it employs approximately 45,000 people. Kesko operates in the grocery trade, the building and technical trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko's net sales are €10 billion and it employs approximately 30,000 people. Kesko has over 2,000 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia, Belarus and Poland. Kesko is a listed company and its shares are listed on Nasdaq Helsinki. The company's domicile and main business premises are in Helsinki. Kesko is the world's most responsible trading sector company (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi