Northern European to sell 14 properties in Sweden to Kungsleden UPDATE |
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Tue, 27 Nov 2007 10:37
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(Adds details on investing, share buyback plans)LONDON (Thomson Financial) - Northern European Properties Ltd said it has agreed in principle to sell 14 properties in Sweden to Kungsleden AB and that it has also agreed the sale of a property in Sweden to Dios & Kuylenstierna AB.The company said the two transactions will bring it net sales proceeds of 363 mln eur, and that it will use these proceeds to partially fund the completion of four acquisitions in Russia, consisting of two offices, a hotel and a retail store in St Petersburg.Northern European said it will initially inject significantly more equity into these purchases than previously expected due to the current debt market conditions.The gross rental income for the sold properties was about 29.4 mln eur.Northern European also said that, where attractive values can be achieved, it will consider further sales within its Nordic portfolio to help improve its cash position and financial flexibility.The company added it will consider a share buyback in light of the current discount of its share price to its reported net asset value, should additional sales be executed.TFN.newsdesk@thomson.comfaj/jlc/faj/vlbCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Northern European to sell 14 properties in Sweden to Kungsleden 