London-listed Atlas Estates has signed an agreement with Cyprus-headquartered Pottertry to sell its entire long-term investment assets throughout Slovakia. The portfolio consists of a 50% stake in three mixed-use developments in the country.
London-listed Atlas Estates has signed an agreement with Cyprus-headquartered Pottertry to sell its entire long-term investment assets throughout Slovakia. The portfolio consists of a 50% stake in three mixed-use developments in the country.
The transaction price of EUR 22.3 mln represents a 60% discount to the assets' book value at end-June 2009 and a loss for Atlas of EUR 5.7 mln. The company said it will realise EUR 8 mln in net proceeds from the sale of the portfolio, which comprises 879,000 m2 of land on the outskirts of Bratislava known as Nove Vajnory, as well as two sites with 10,000 m2 of developable land in Kosice.
The operation is expected to 'reduce the group's overall debt by some EUR 20.5 mln pending any reinvestment of the cash proceeds', Atlas said. The proceeds will be used to fund the development of Atlas' remaining assets, particularly the properties located in Warsaw, Poland, where the company expects to realise value from development activity within the next two to three years.
'This contrasts with the Slovakia Portfolio, which would have required the investment of large amounts of additional capital with any potential returns likely to arise in the long term,' Atlas added.
