Finnish retailer Kesko lines up 670mn euro real estate deal

28 Nov, 2014

HELSINKI: Retailer Kesko is looking to sell Finnish and Swedish store sites worth up to 670 million euros ($835 million) to a new joint venture early next year, it said on Friday, having shelved a previous deal with a real estate trust.

The deal will generate a significant one-off profit, Finland's second-biggest food retailer said, and is expected to lead to extra dividends.

Kesko, which would continue operations at the sites under leases, had previously considered a move to sell sites worth 750-950 million euros to a real estate trust this year. Analysts estimated that such deal could have resulted in an extra dividend of 5-6 euros per share.

Copyright Reuters, 2014

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