Stern Group realises sale and leaseback of two premises

Published: 12-12-2017 17:54

Stern Groep NV, the Dutch listed automotive group, is to sell two strategic premises to Aviva Investors and will lease the premises back for 15 years and 20 years. The lease contracts are in line with the market. Aviva Investors buys the two assets for their Continental European Long Lease Strategy Fund  (CELLS). Aviva Investors is the global asset management business of Aviva plc with around € 437 Billion worth of Assets under Management, of which around € 44 Billion invested in real estate. The transaction will generate proceeds of € 16.5 million and a book gain of € 2.2 million for Stern Group. After repayment of mortgages amounting to € 7.0 million, additional liquidity of € 9.5 million will remain. This sale and leaseback transaction will positively affect the solvency and liquidity position of Stern Group. The negative effect on profitability will be limited due to lower interest expense and lower depreciation.

Strategic premises

Stern Group is selling two strategic premises this year. The premises in Almere (Svala Auto) was purchased from the then lessor in June 2017, and is now to be sold again and leased back for 15 years. The other premises concerns an ultra-modern dealership in Purmerend newly built in 2017 under own management, that shortly after delivery to Heron Auto will be sold and leased back for a period of 20 years. Both premises will be leased back on the basis of ‘triple net’.

Book gain

The book gain on the sale and leaseback transaction of approximately € 2.2 million will be recognised in the results for the 4th quarter of 2017.

Klik hier voor de pdf van het volledige persbericht d.d. 12 december 2017

Press here for the press release dated 12 december 2017 in English