Hoivatilat Sells Properties and Specifies its Guidance

Finland — Suomen Hoivatilat Oyj signed a sales agreement with Special Investment Fund eQ Care, based on which Hoivatilat sells all shares in six property companies to eQ. The debt-free purchase price is EUR 16.4 million. Hoivatilat expects to receive non-recurring sales profit of approximately EUR 1 million from the transaction.

2018-09-07

"This transaction helps us to release capital for new real estate projects. Net gains from this transaction, together with bank financing, enable us to make new investments of EUR 30 million in real estate", says Jussi Karjula, CEO of Hoivatilat.

As a result of the sale, Hoivatilat specifies this year's guidance as follows:

Hoivatilat expects its total revenue to be approximately EUR 17 million in 2018 (previously EUR 17.5 million). The operating result is estimated to be about 40% of revenue. The fair value of investment properties at the end of 2018 is estimated to be EUR 330 - 340 million (previously EUR 340 million). The guidance is based on the assumption that, during rest of the year 2018, the company will not make any new significant purchases or sales of finished investment properties, and that the market yields used in the valuation of investment properties will remain as they are.

Axel Ohlsson

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