Disposal
January 18 2008 - 4:09AM
UK Regulatory
RNS Number:0646M
Northern European Properties Ltd
18 January 2008
Northern European Properties Limited
Sale of Finnish Portfolio
Northern European Properties Limited ("NEPR" or the "Company"), which invests in
real estate opportunities in the Nordic and Baltic regions and Russia, is
pleased to announce today that it has signed an agreement to sell a portfolio
of 39 properties, principally in Finland, through the sales of shares, to a real
estate fund managed by CapMan. The net sale proceeds amount to approximately Euro
800 million, which is in line with the external valuation by DTZ as at 30 June
2007. The agreement contains a price adjustments mechanism following
finalisation of technical due diligence which will be completed by March 2008.
The agreed purchase price is based upon a desk top technical due diligence
exercise. The gross rental income for the sold properties was approximately Euro 50
million.
The portfolio consists of all of NEPR's hotel assets in Finland, and also
includes one hotel in Are, Sweden. The majority of the hotel properties are
operated by major Finnish operators including Restel Oy, Sokotel Oy and Scandic
Hotels Oy under international brands such as Crowne Plaza, Holiday Inn,
Radisson, Ramada and Holiday Club, as well as Finnish brands including Cumulus,
Sokos Hotels and Palace Hotels. Following completion of this transaction, NEPR
will have sold all of its assets in Finland.
The transaction is expected to complete during Q1, 2008. NEPR is providing the
purchaser with a vendor loan note of Euro 25 million which is aimed to be repaid
within a year. In the event it is not repaid and certain conditions are
fulfilled it can be converted into equity in the fund on pari passu basis with
all other investors.
The Board continues to believe that Russia offers an attractive real estate
investment opportunity, where the combination of rental increases and a further
yield shift should provide attractive returns for shareholders. As it has
previously stated, and in the light of current market conditions, the Board will
take a cautious approach to further acquisitions. The proceeds from the disposal
announced today will be used with priority to pursue further acquisitions in
Russia on a highly selective basis, and to the extent attractive opportunities
are not available, the Company will return capital to shareholders. The Board
will update shareholders further when it announces the Company's preliminary
results to 31 December 2007 in March 2008.
Jens Engwall, Chairman of NEPR said: "We are delighted to have agreed this
substantial transaction which is in line with the Board's previously announced
strategy to optimise the value of our existing Nordic portfolio and take
advantage of continuing liquidity in that market. It serves to verify the
Company's reported property valuations and further improves NEPR's cash position
and financial flexibility."
Enquiries:
Jens Engwall, Chairman Tel: +46 70 690 65 50
Thomas Lindeborg, CEO Tel: +44 20 7499 40 60
Per Lindblad, CFO Tel: +46 8 456 32 51
Hotel name City sqm Rooms
1 Crowne Plaza Helsinki Helsinki 32 600 349
2 Cumulus Airport Vantaa 12 285 278
3 Cumulus Hameenlinna Hameenlinna 7 214 100
4 Cumulus Jyvaskyla Jyvaskyla 9 540 203
5 Cumulus Kemi Kemi 5 495 184
6 Cumulus Koskikatu Tampere 9 800 230
7 Cumulus Kuopio Kuopio 4 147 141
8 Cumulus Oulu Oulu 12 250 207
9 Cumulus Pinja Tampere 3 070 60
10 Cumulus Rauma Rauma 4 000 103
11 Cumulus Rovaniemi Rovaniemi 5 142 64
12 Cumulus Seinajoki Seinajoki 8 935 71
13 Holiday Club Katinkulta Vuokatti 4 723 116
14 Holiday Club Kuusamo Kuusamo 12 100 125
15 Holiday Club Oulun Eden Oulu 14 762 169
16 Holiday Club Saariselka Saariselka 10 001 139
17 Holiday Club Tampereen Kylpyla Tampere 8 519 92
18 Holiday Club Are Are, Sweden 22 459 205
19 Holiday Inn Garden Court Vantaa 6 799 280
20 Holiday Inn Oulu Oulu 5 587 154
21 Holiday Inn Tampere Tampere 6 470 135
22 Holiday Inn Turku Turku 7 200 199
23 Palace Linna Helsinki 6 869 48
24 Radisson SAS Vaasa Vaasa 22 349 285
25 Ramada Airport Vantaa 12 269 292
26 Rantasipi Aulanko Hameenlinna 15 584 246
27 Rantasipi Eden Nokia 20 610 204
28 Rantasipi Joutsenlampi Joutsa 6 534 42
29 Rantasipi Laajavuori Jyvaskyla 19 333 175
30 Rantasipi Pohjanhovi Rovaniemi 15 000 215
31 Rantasipi Rukahovi Rukatunturi 14 000 180
32 Rantasipi Sveitsi Hyvinkaa 16 970 194
33 Rantasipi Tropiclandia Vaasa 10 639 184
34 Scandic Plaza Turku 5 314 117
35 Scandic Rovaniemi Rovaniemi 5 692 167
36 Sokos Hotel Albert Helsinki 4 561 95
37 Sokos Hotel Pasila Helsinki 7 889 178
38 Sokos Hotel Seurahuone Kotka 7 700 128
39 Sokos Hotel Vaakuna Hameenlinna 4 583 123
This information is provided by RNS
The company news service from the London Stock Exchange
END
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