Norgani Hotels ASA has entered into an agreement with Kungsleden for the sale of a mixed use property in Malmö, Sweden. The agreed price for the property is approx. €8 million (SEK 81 million).
The property Gunghästen 1, Malmö has a lettable area of 8.764 m² of which 62% is hotel. It comprises the Hotel Best Western Jägersro with 81 rooms. 7% of the premises are vacant.
The closing date is 1 March 2007.
The sales price is in accordance with book value. The acquisition value is approx. €7 million (SEK 71,3 mln) and the cash flow from the sale amounts to approx. €1 million (SEK 9,7 mln).
The sale is in line with Norganis strategy to actively develop its portfolio of Scandinavian hotels and divest non core business properties.
Norgani will after this own 40 hotels in Sweden.