Mekonomen divests Group property portfolio.

09 May 2007 08:30

Mekonomen has signed a contract for the divestment of the Group’s property portfolio, comprising 85,000 square metres of floor space divided between 45 stores and other commercial properties in Sweden and Denmark.

The purchase price totals SEK 529 M. The preliminary capital gain after tax amounts to SEK 131 M.

The annual rental expense is estimated at approximately SEK 36 M.

Transfer will be on 1 June 2007, when the final settlement will also be made, which means that the earnings effect of the sale will be reported in the second quarter of 2007.

The buyer is a fund managed by AXA Real Estate Investment Managers which is owned by the French company AXA Insurance.