Volvo divests properties in Gothenburg
The Volvo Group has signed an agreement with the real estate company Platzer Fastigheter Holding AB regarding the sale of properties in the areas of Arendal, Torslanda and Säve in Gothenburg, Sweden. The sales price amounts to SEK 2.7 bn on a debt free basis and the divestment results in a capital gain of SEK 1.4 bn, which is expected to impact the Group’s operating income by the corresponding amount in the fourth quarter of 2016.
The divestment is part of a long-term plan to gather the majority of Volvo Group office workers in Gothenburg in an area that will be called Campus Lundby. The Volvo Group will rent some of the properties that are sold during a transitional period, pending the completion of Campus Lundby.
The Group’s operating cash flow and financial net debt will be positively affected in the amounts of SEK 2.6 bn and SEK 2.3 bn, respectively, in conjunction with the closing of the transaction, which is expected to be carried out in the fourth quarter of 2016.
October 21, 2016
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The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2015 the Volvo Group’s sales amounted to about SEK 313 billion (EUR 33,4 billion). The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on Nasdaq Stockholm. For more information, please visit www.volvogroup.com.
