Volvo Divests Non-Strategic Commercial Real Estate Portfolio
News: Sweden-based Volvo is to divest commercial real estate assets primarily in Gothenburg, Sweden, for SEK2bn (US$307.98mn) to Sweden-based developers Hemfosa Fastigheter and AB Sagax. The non-strategic real estate portfolio is leased to external tenants. The deal also comprises properties in Finland, Sweden and Denmark that will be mainly rented by Volvo Group companies. The transaction is likely to be completed in Q214 subject to regulatory approval. After the deal the net financial debt in the carmaker's industrial operation will decline by about SEK1.9bn (US$292.58mn), while operating income will increase by SEK900mn (US$138.590mn) in Q214.