Sanoma to book €11M capital gain in Q4 results following sale of 40,000 square meters of residential building rights in Vantaa, Finland
November 10, 2011
– Sanoma Corporation has sold some 40,000 m2 of residential building rights in Keimola area in the city of Vantaa to a new company owned by the Finnish construction companies SRV Rakennus Oy, Sato-Rakennuttajat Oy and Asuntosäätiön Rakennuttaja Oy. The total value of the transaction is EUR 12.9 million, which will be paid in three instalments during 2011-2013. Since the ownership of the area is transferred at the time of the first payment, Sanoma will book a non-recurring capital gain of some EUR 11 million in its fourth quarter result. The building of the area will begin in 2013.
Sanoma acquired the land area in Keimola in 1980s as a potential site for production facilities. The current city plan allocates most of the area for residential use. After this transaction, Sanoma will still have some 20,000 m2 of residential building rights and some 34,000 m2 of office building rights in the area.
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