Transaction HKScan sold the Vantaa property

by Sabrina Meyer
Monday, February 22, 2021
The Vantaa unit produces food-meals and meat products.
Photo: HkScan
The Vantaa unit produces food-meals and meat products.

HKScan sold the land and buildings of its Vantaa property to Sagax Finland Asset Management.

By decision of the Board of Directors, HKScan Group has sold the land and buildings of its Vantaa property to a real estate investor, Sagax Finland Asset Management Oy, a subsidiary of AB Sagax listed on Nasdaq Stockholm. The transaction price is almost € 77 mill. The transaction has no significant impact on HKScan’s result for the current year. The lease agreed in connection of the transaction allows HKScan to continue and develop its business in Vantaa for the following 20 years. The agreement also includes an option for additional years.

HKScan Plastikreduktion
(Bild: HKScan)

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With the transaction, the structure of HKScan’s financing will diversify. However, lease liabilities of the long-term lease now agreed are recognised in the company’s balance sheet as a lease liability debt in accordance with IFRS. As a result, the agreement will reduce the company’s net debt by some € 10 mill. and net debt per share by 10 eurocents. The lease HKScan will pay for Vantaa will be some € 5 mill. a year; correspondingly, the company will not be subject to depreciations related to the Vantaa property and financial expenses will decline.

HKScan’s Vantaa unit makes some 50 mill. kg of meals and processed meat products annually. Nearly 120 mill. kg of products are delivered annually to customers through the logistics centre located in the area. Nearly 700 food industry professionals work in the Vantaa unit.

HKScan acquired the Vantaa plot of land in April 2020 from LSO Osuuskunta using the right of first refusal included in the land lease agreement. The purchase price was approximately € 36 mill. and corresponded to the offer LSO Osuuskunta had received from a third party. In addition to the land, the transaction now made includes the buildings on the property.

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