Finnish retailing conglomerate Kesko Corporation has inked a €652 mln sale and leaseback deal with Swedish life insurance company AMF Pensionsförsäkring and pension fund Ilmarinen.

Finnish retailing conglomerate Kesko Corporation has inked a €652 mln sale and leaseback deal with Swedish life insurance company AMF Pensionsförsäkring and pension fund Ilmarinen.

Under the agreement, Kesko is selling the assets to a new retail joint venture equally owned by the three parties and known as Ankkurikadun Kiinteistöt.

The partnership, which will own, manage and develop store sites primarily used by Kesko Group, has been seeded with a €652 mln portfolio consisting of 34 store sites and two shopping centres in Finland and Sweden sold by Kesko, one shopping centre sold by Kruunuvuoren Satama and two store sites sold by Kesko Pension Fund in Finland.

'As a result of the arrangement, Kesko's current strong financial position will further strengthen and provide a good basis for the development of the company in line with the future new strategy,' said Kesko's President and CEO Mikko Helander.

Kesko Group companies will lease the store sites under long-term leases of 15 years in Finland and 10 years in Sweden. Its equity investment amounts to €67 mln, the company added.

Closing of the deal is expected to take place in the summer. Advium Corporate Finance advised on the transaction, while JLL acted as commercial advisor to AMF and Ilmarinen.