Stockmann sells iconic department store for E400m to pay off debts
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Loading... - Arturo Ortiz
- 22 Mar 2022
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STOCKMANN on Monday announced it will divest its department store in the heart of Helsinki to Keva, the leading pension provider for public sector employees in Finland.
The Finnish department store chain said it will continue operating in the property under a long-term leaseback agreement signed as part of the over 400-million-euro sale. Keva will pay the bulk of the price, over 390 million euros, in connection with the transaction and take the remainder into account in rent in the next couple of years.
The net yield is approximately 4.2 per cent.
“We are pleased that we have found a stable and reliable domestic owner for the property,” said Jari Latvanen, the CEO of Stockmann.
Stockmann revealed that it will use the proceeds of the divestment to fully repay the over 342 million euros in secured re-structuring debt and almost 22 million euros in unsecured re-structuring debt that are subject to its corporate re-structuring.
The transaction is expected to be closed by the end of April.Jaakko Kiander, the CEO of Keva, stated that acquiring the centrally located and historically important property aligns with the pension provider’s long-term real estate investment strategy, with the anticipated return on investment matching the long-term goal of generating real and adequate return for pension funds. Read More...
