Trelleborg sells property in Stockholm
Trelleborg has signed an agreement with Skanska concerning the sale of land in Södra Hammarbyhamnen in Stockholm, Sweden. The purchase price is approximately SEK 330 M and is based on the estimated development rate. At transfer, a payment of SEK 100 M will be made and when detailed development plans gain legal approval, an additional purchase payment will be made, which will vary depending on the development rate.
The carrying value of the property amounts to about SEK 80 M. The transfer payment will affect cash and bank balances in an amount of SEK 100 M and will result in a capital gain of approximately SEK 20 M for Trelleborg. This will be recorded as nonrecurring revenue in the first quarter of 2007. The additional purchase price will be reported when the detailed development plan is complete.