ICA Real Estate is selling ICA Eiendom Norge AS, with an underlying property value of SEK 2.2 billion, to UNION Real Estate Fund II, a real estate fund managed by the Norwegian firm UNION Eiendomskapital. The deal gives ICA Gruppen a positive cash flow of approximately SEK 1.9 billion and a capital gain of slightly more than SEK 400 million¹. The sale of ICA Eiendom is being made as a result of ICA Gruppen's previous sale of its grocery retail business in Norway.
The sale of the company ICA Eiendom includes a property portfolio as well as the existing organisation. In all, the sale covers 58 properties in Norway, and the transaction is expected to close in February 2017.
The sale of ICA Eiendom will generate a capital gain of approximately SEK 400 million¹ for ICA Gruppen, which will be recognised during the first quarter of 2017. With this sale the entire property portfolio in Norway will have been divested. A total of 73 properties have been sold for SEK 2.8 billion, generating a capital gain of slightly more than SEK 430 million.
"Interest in the properties has been great," comments Per Strömberg, CEO of ICA Gruppen. "We are satisfied with the purchase price and that our employees at ICA Eiendom are being offered continued employment. It feels good that we can now conclude the process of leaving Norway that we began in 2014."
For the sale of ICA Eiendom, Pangea Property Partners has served as financial advisor, Advokatfirmaet Haavind has served as legal advisor, and Handelsbanken Capital Markets has served as debt financial advisor.
EBITDA for ICA Eiendom was SEK 159 million in 2015 and SEK 91 million on a rolling 12-month basis.
This information is such that ICA Gruppen is obligated to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication at 07:45 CET on Friday, 2 December 2016.
At an exchange rate of NOK 1/SEK 1.08
ICA Gruppen AB (publ) is a leading retail company with a focus on food and health. The Group includes ICA Sweden and Rimi Baltic which mainly conduct grocery retail, ICA Real Estate which owns and manages properties, ICA Bank which offers financial services and Apotek Hjärtat which conducts pharmacy operations. The Group also includes Hemtex. For more information see icagruppen.se
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For ICA Gruppen AB:
ICA Gruppen press service, +46 10 422 52 52