Kesko Corporation and the Kesko Pension Fund have sold the office and logistics property located at Tikkurilantie 10, Hakkila, Vantaa, to Aberdeen Real Estate Fund Finland in a transaction closed today. The price paid by the fund to Kesko and the Kesko Pension Fund totals about €31 million, of which Kesko's share is about €10 million. The Kesko Group recognises a gain of about €4 million on the disposal, which will be reported as a non-recurring item in Rautakesko's profit for the second quarter.
Rautakesko will continue as the principal user of the premises under a long-term lease. Approximately half of the premises have been leased to logistics companies outside Kesko. Premises not used by Kesko are not included in the leaseback system and the buyer will be responsible for them in the future. The total lease area of the property is about 26,000 m².
"The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds will be used to strengthen the store network in Finland and abroad," says Kesko's Arja Talma, Senior Vice President, CFO.
"This logistics and office property is a perfect complement to our portfolio. The Hakkila area is undergoing intensive development and we are engaged in cooperation with Kesko to further develop the properties," says Mauri Laurila, Asset Manager of the fund.
As at 31 December 2007, Kesko owned a total of 1.0 million square metres, and leased a total of 2.6 million square metres of real estate in Finland, the Baltic countries and Russia. Kesko's investments in store sites were €189 million in 2007.
Arja Talma, Senior Vice President, CFO, Kesko Corporation, tel. +358 1053 22113
Mauri Laurila, Asset Manager, Aberdeen Real Estate Fund Finland UK L.P., tel. +358 10 3040 272
Kesko (www.kesko.fi) is a retail specialist whose stores offer quality to the daily lives of consumers. Kesko has about 2,000 stores engaged in chain operations inthe Nordic and Baltic countries, Russia, and Belarus.
Aberdeen Property Investors is a subsidiary of Aberdeen Asset Management PLC, specialising in real estate. The parent company is a worldwide asset management company listed on the London Stock Exchange. The value of the assets under its management is about €135 billion (31 March 2008).