ICA Real Estate, part of Sweden’s ICA, has announced the sale of four retail properties to Delcore Fastigheter, a property company jointly owned by the business alongside pensions company AMF.
The property value is around SEK 520 million (€44.66 million), the retailer noted, while the total area of the site encompasses approximately 15,373 square metres.
The retail properties being sold include a Maxi ICA Stormarknad in Falköping, ICA Kvantum Frölunda, ICA Kvantum Landvetter, and ICA Supermarket Eksjö.
‘An Excellent Collaboration’
“We have enjoyed an excellent collaboration with AMF since we formed Delcore Fastigheter almost two years ago and are pleased that we can now strengthen our jointly owned company with an additional four retail properties,” commented Jan-Erik Hellman, CEO of ICA Real Estate.
“Through this transaction, we are creating conditions to maintain influence in the marketplaces at the same time as releasing capital for ICA to reduce the group’s net debt.”
Cash Flow
The net effect of the transaction on ICA’s cash flow will total around SEK 390 million (€33.57 million) in the fourth quarter of 2024, while the group’s net debt (excluding ICA Bank and IFRS’s 16 lease liabilities) will be reduced at the same time, by SEK 390 million (€33.57 million).
If the IFRS lease liabilities are included, net debt will be reduced by approximately SEK 40 million (€3.44 million).
The transaction will also result in a capital gain of approximately SEK 20 million (€1.78 million), which will be recognised as an item affecting comparability in ICA’s operating profit for the fourth quarter of 2024.
Delcore Fastigheter is set to take over the properties at the start of December.
As well as Delcore Fastigheter, ICA Real Estate operates the jointly owned company Ancore Fastigheter, together with occupational pensions company Alecta, in addition to the company Trecore Fastigheter, alongside Bonnier Fastigheter. AMF owns 12.7% of the shares in ICA Gruppen.
