Stockmann has agreed on the sale of its department store property in Helsinki city centre and continues with a long-term leaseback agreement
STOCKMANN Oyj Abp, Inside Information 21.3.2022 at 9:00 EET
Stockmann has today, according to the corporate restructuring programme, agreed on the sale of its department store property in Helsinki city centre to the pension provider Keva. The value of the transaction is EUR 400 million, of which approximately EUR 391 million will be paid in connection with the transaction. The remaining part will be taken into account in the rent during the next few years.The net yield is approximately 4.2 per cent. The sale is subject to customary closing conditions and Stockmann expects the sale to be completed by the end of April 2022 at the latest. Stockmann will use the proceeds from the sale of the property to fully repay both the secured restructuring debts of EUR 342.6 million and the undisputed unsecured restructuring debts of EUR 21.8 millionthat are currently subject to the corporate restructuring payment programme. Stockmann also has unsecured restructuring debt that remains conditional, maximum amount or disputed, in respect of which the amount subject to the payment programme will be confirmed later.
Stockmann will continue its department store operations in the entire building under a long lease-back agreement to be made with the new owner. Leases with Stockmann's tenants will continue with the current concept.
“We are pleased that we have found a stable and reliable domestic owner for the property. The department store building in Helsinki city centre is iconic and has an excellent location, which facilitated the sale of the property”, says Jari Latvanen, CEO of Stockmann.
”Stockmann’s property is a unique and high-quality entity, where we see an investment opportunity with stable returns and development opportunities. The valuable property in a central location is a good addition to Keva's growing real estate portfolio. It is in line with Keva's investment strategy to make long-term investments in objects that maintain their value and offer a stable return”, says Jaakko Kiander, CEO of Keva.
The department store in Helsinki city centre is designed by the architect Sigurd Frosterus and has a total leasable area of approximately 51 500 square meters. The building was completed in 1930 and has after that been enlarged to its entirety.
Keva is a public sector pension provider and Finland’s largest employment 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 EUR 67 billion.
Webcast A press and analyst briefing will be held today, on 21 March 2022 at 10:00 as a live webcast, that can be followed by this link.
Further information: Jari Latvanen, Stockmann’s CEO, tel. +358 9 121 5606
Jaakko Kiander, Keva’s CEO, tel. +358 20 614 2097