Keops sells two properties in Sweden for approx. €67 million (SE/DK)

Keops has concluded an agreement about sale of two Swedish properties at a total price of approx. €67 million (SEK 680 mln). The sale comprises a shopping center in Borlänge as well as the ferry terminal building, Knutpunkten, in Helsingborg.

The two properties are sold to the British investment fund Lathe Investments. Lathe Investments is specialised within operation and development of shopping centers and related properties.

The properties are sold as a part of Keops' continuous work on optimising the existing property portfolio through active asset management – including also divestment of individual properties which do not match the Group's portfolio strategy in respect of e.g. use and geography.

After transaction costs, the sale of the properties (acquired by Keops in 2005/06) are expected to generate approx. €8 million (DKK 65 mln) of liquidity and also a profit before tax of approx. €8 million (DKK 65 mln) as the sales price exceeds the carrying amount at 30 September 2006.

The two properties will be transferred to the acquirer on 23 May 2007.

Consolidation in line with plan
Apart from optimisation of the composition of Keops' property portfolio, a consolidation is in process through divestment of portfolios ready for sales which have been more closely described in the six-point plan.

Previously in 2007, Keops carried through the sale of a number of Swedish residential properties and of Fatburen, and the ongoing sale of the remaining 37 properties of the Malmstaden portfolio proceeds as planned. This means that the expectations of the six-point plan as regards gain and cash proceeds on the property portfolios designated as ready for sale are expected to be met.

Keops' expectations of the future
Accordingly, management maintains the most recently reported expectations of Keops Group's total consolidated profit before tax for this financial year. The expectations of profit before tax for 2006/07 accordingly constitute approx. €55-80 million (DKK 450-650 mln) including value adjustments of properties and debt.

Source: Keops

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