Finnish retail group Kesko has announced that it has sold seven store sites used by Kesko Senukai in Estonia and Latvia to the property investment company UAB Baltic Retail Properties.
At the same time, the retailer has acquired a 10% share in the property investment company, in a deal which is valued at approximately €174 million.
Kesko generated a €50 million profit on the divestment of properties, which was valued at €64 million.
Trade Operations
K-Group leases 19 store sites from UAB, and as a result of the arrangement, lease liabilities increased by approximately €124 million. The company states, however, that the arrangement will not have any significant impact on profit.
Kesko Senukai is the K-Group company responsible for building and home improvement trade operations in the Baltics and Belarus. It has over 50 stores in the region, and last year reported sales reaching almost €600 million.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
