Kesko today sold its central food warehouse property at Hakkila, Vantaa, the main office building of Kaukomarkkinat at Kilo, Espoo, and 16 food store properties in different parts of Finland to Nordisk Renting Oy. The total selling price was 95.7 million euros and Kesko Group's sales profit was 44.7 million euros. The premises were leased back on long lease terms. The lease liability totalling 95.8 million euros is not recognised as finance lease.
In addition to properties owned by Kesko, the deal included one food store building owned by the Kesko Pension Fund. All premises now sold were so-called core properties which means that the aim is to sell them and lease them back for business purposes in accordance with Kesko's real estate management strategy. Kesko's real estate properties are classified as strategic properties, core properties, development properties and realisation properties. Strategic properties include large retail stores which Kesko wants to own. The strategic properties represent approximately two thirds of Kesko's total real estate capital.
On 31 December 2004, Kesko owned a total of 1.2 million square metresof real estate properties in Finland, the Baltic countries and Sweden. Their carrying amount was approximately 900 million euros. Leased premises totalled 1.8 million square metres with approximately 1,300 million euros of lease liabilities. During the last five years, investments in real estate and store premises have amounted annually to nearly 150 million euros on average. The total area of the premises included in the deal was 108,000 square metres, of which the central food warehouse accounted for approximately 60,000 square metres.
Juhani Järvi, Corporate Executive Vice President, CFO, tel. +358 1053 22209
Juhani Rontu, Manager, tel. +358 1053 23046
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