Stockmann, a chain of department store, has plans of selling a “well known building in Helsinki” that holds “an estimated book value of around 100 million euros”. The transaction is desired to be in cash among “a booming market for commercial property in the Finnish capital”.
As per Reuters:
“A possible sale of the ‘Book House’ in the heart of Helsinki -- together with a long-planned property sale in St Petersburg -- would help the indebted company which posted a core quarterly loss for the third quarter”.
In the month of November 2017, the store chain had put forward “real estate assets including the ‘Book House’” as part of “collateral for a new refinancing package”. Stockmann’s director of Real Estate, Bjorn Teir, said:
“Values in Helsinki are record high at the moment, and as we don’t practise retail business in this property any longer, we will start investigating a possible divestment”.
There was no “book value” given by Tier for the “Book House” which was the design of Alvar Aalto, built in the year of 1969. However, the analyst from Inderes, a “research firm”, Sauli Vilen roughly estimates the price to be “around 100 million euros”.
Reuters reports stated that:
“Shares in the company, which fell about 40 percent last year, were up 5.2 percent at 4.58 euros by 0915 GMT”.
According to Stockmann, the process of negotiation with O1 Group, an “investment company”, for the sale of its “Petersburg department store property” with “a book value of 181 million euros” still continues. The “flagship department store” of Helsinki forms the majority of the company’s “total fair value” of “real estate assets” at “950 million euros”. While Reuters added:
“The company, known for its premium department stores, has struggled in recent years due to slowdowns in Finland and Russia as well as a consumer shift to online shopping”.
References:
reuters.com
As per Reuters:
“A possible sale of the ‘Book House’ in the heart of Helsinki -- together with a long-planned property sale in St Petersburg -- would help the indebted company which posted a core quarterly loss for the third quarter”.
In the month of November 2017, the store chain had put forward “real estate assets including the ‘Book House’” as part of “collateral for a new refinancing package”. Stockmann’s director of Real Estate, Bjorn Teir, said:
“Values in Helsinki are record high at the moment, and as we don’t practise retail business in this property any longer, we will start investigating a possible divestment”.
There was no “book value” given by Tier for the “Book House” which was the design of Alvar Aalto, built in the year of 1969. However, the analyst from Inderes, a “research firm”, Sauli Vilen roughly estimates the price to be “around 100 million euros”.
Reuters reports stated that:
“Shares in the company, which fell about 40 percent last year, were up 5.2 percent at 4.58 euros by 0915 GMT”.
According to Stockmann, the process of negotiation with O1 Group, an “investment company”, for the sale of its “Petersburg department store property” with “a book value of 181 million euros” still continues. The “flagship department store” of Helsinki forms the majority of the company’s “total fair value” of “real estate assets” at “950 million euros”. While Reuters added:
“The company, known for its premium department stores, has struggled in recent years due to slowdowns in Finland and Russia as well as a consumer shift to online shopping”.
References:
reuters.com