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The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2.
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007.
Kesko Corporation Paavo Moilanen Senior Vice President, Corporate Communications and Responsibility
DISTRIBUTION Helsinki Stock Exchange Main news media
Kesko (www.kesko.fi) is a retail specialist whose stores offer quality to the daily lives of consumers. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries, Russia, and Belarus.
Aberdeen Property Investors is the dedicated property investment division of Aberdeen Asset Management PLC, a global investment management group listed on the London Stock Exchange, which manages around €140 billion of assets in equities, fixed income and property.
