Nordic retail specialist ICA Real Estate has sold its Norwegian subsidiary ICA Eiendom Norge to a fund managed by local firm Union Eiendomskapital.
The deal covers 58 properties in Norway valued at SEK 2.2 bn (€224 mln) as well as 11 staff. It follows ICA Gruppen’s previous sale of its grocery retail business in Norway.
ICA Real Estate said it will realise a positive cash flow of around SEK 1.9 bn and a capital gain of slightly more than SEK 400 mln from the sale, which is expected to close in February 2017.
The deal marks ICA Gruppen’s full withdrawal from the Norwegian real estate market. A total of 73 properties have been sold for SEK 2.8 bn, generating a capital gain of slightly more than SEK 430 mln.
‘Interest in the properties has been great,’ commented Per Strömberg, CEO of ICA Gruppen. ‘We are satisfied with the purchase price and that our employees at ICA Eiendom are being offered continued employment. It feels good that we can now conclude the process of leaving Norway that we began in 2014.’
Pangea Property Partners served as financial adviser to ICA Real Estate on the sale, while Advokatfirmaet Haavind acted as legal advisor. Handelsbanken Capital Markets served as debt financial advisor.
