Swedish Match sells Stockholm Headquarters
Nordisk Renting acquired Swedish Match’s Corporate headquarters in Stockholm on December 21, 1998, and at the same time entered into a long-term leasing agreement for the entire property.
The divestment will result in a capital gain of SEK 267 M for Swedish Match.
The sale of the property is part of Swedish Match’s strategy of preparing itself to play an active part in suitable structural transactions in the tobacco industry.
The property, the building of which began in the 1920s, originally housed the only modern tobacco factory and raw tobacco warehouse in the Stockholm region. Since then, the property has been successively converted and extended and today it is a high-class, modern office property. The freehold site comprises an entire block of 19,000 square meters bounded by Rosenlundsgatan, Maria Bangata and Maria Skolgata. Included with the property are development rights for approximately 6,000 square meters. The buildings have a leasable area of slightly more than 44,000 square meters, as well as 110 garage parking spaces.
This property acquisition is an element in Nordisk Renting’s strategy of acquiring properties for long-term lease to financially strong parties.
Swedish Match is an international group with headquarters in Stockholm, Sweden. The company manufactures a broad range of tobacco products, matches and disposable lighters which are sold in approximately 140 countries. Annual sales in 1997 amounted to approximately 7,500 MSEK. Swedish Match is listed on Stockholm Stock Exchange and on NASDAQ.
Nordisk Renting is one of Sweden’s largest property companies. Its business comprises a total of 270 properties with a floor area of 2.8 million m2 in Sweden, Norway, Denmark, Holland, Germany and Switzerland. Nordisk Renting acquires and develops properties for long-term leasing and is responsible for management, administration and financial management of a property portfolio worth a total of approximately SEK 22 billion.
The Nordisk Renting Group’s earnings amounted to SEK 267 M in 1997 and are expected to amount to SEK 350 M in 1998.
Nordisk renting is owned by MeritaNordbanken (40%), Atle AB (35%) and 6th AP Fund (25%).
For further information, please contact:
Swedish Match AB
Sven Hindrikes, Senior Vice President & Chief Financial Officer, +46 8-658 02 82
Bo Aulin, Senior Vice President, Corporate Affairs, +46 8-658 03 64
Boel Sundvall, Vice President, Investor Relations, +46 8-658 01 73
Nordisk Renting AB
Göte Dahlin, President, +46 8-670 98 00
Åke von Ajkay, Director, +46 8-670 98 00