In a sales contract signed today, Sponda Plc is selling a registered real estate company called Kiinteistö Oy Vantaan Erikas to the city of Vantaa for roughly €35 million.
The real estate company owns about 72 hectares of land in the Lapinkylä and Piispankylä districts of Vantaa. The sale is related to an agreement made by the Finnish government and Sponda Plc concerning Sponda's acquisition of Kapiteeli Plc that gives the Finnish government the right to repurchase certain land sites intended for residential development (Stock Exchange Release issued by Sponda on 31 January 2007).
The disposal has no impact on Sponda's result. Selling these sites is part of Sponda's strategy to sell certain property assets for €300-500 million in order to refinance the loan raised to finance the Kapiteeli acquisition.