ENDESA has sold to Vallehermoso´s subsidiary Testa Inmuebles en Renta, S.A., the portfolio of twelve real estate assets that it put up for sale in Spain.
This decision from the Board culminates a two-phase sale process carried out in three months, in which a large number of both domestic and foreign real estate companies have taken part.
Vallehermoso´s bid of Euro 385 million has been selected among a group of four final bids, giving a gross capital gain of around Euro 150 million. The transaction will be completed before 15th February 2003, and will have accounting effects in the first quarter of the year.
The portfolio of assets sold, which includes the new headquarters, comprises a total surface of 165,000 sqm. - of which 125,000 sqm. correspond to office space - in ten of Spain´s major cities.
ENDESA will sign leasehold contracts of between 5 and 10 years for nine of the office buildings and for longer periods for three buildings located next to distribution facilities.
This sale of real estate assets, which will be followed by the sale of other buildings in Spain and Latin America, contributes to the rationalisation of operating space in accordance with the company´s cost reduction plan. This transaction is one more step in the asset disposal programme for Euro 6 to 7 billion that is part of its Strategic Plan for 2002-2006, of which Euro 3.4 billion have already been committed in the last twelve months. This figure includes the generation and distribution assets integrated in Viesgo, the sale of the transmission grid to Red Electrica de Espana and the sale of stakes in Arch Coal and water companies.