Delcore Fastigheter will be 50%-owned each by ICA Real Estate and AMF. The aim of the company is to acquire and own ICA stores and other commercial properties in strategic locations where ICA is the main tenant.
“ICA Real Estate’s mission is to satisfy the Group’s long-term need for the right premises in the right locations. Through the formation of Delcore Fastigheter we are creating conditions for ICA to maintain influence over its marketplaces at the same time that we free up capital to reduce the Group’s net debt. We have very good experience of cooperating with jointly owned companies and look forward to a long and rewarding cooperation with AMF,” comments Anna Nyberg, CEO of ICA Real Estate.
The 30 store properties that are being acquired by the jointly owned company measure more than 150,000 square metres, with a combined property value of approximately SEK 5 billion. AMF will enter its ownership of Delcore Fastigheter on 1 April 2023.
The net effect of the transaction on the Group’s cash flow is estimated to be approximately SEK 3.8 billion during the second quarter of 2023. At the same time, the Group’s net debt (excluding ICA Bank and IFRS 16 lease liabilities) is expected to decrease by SEK 3.8 billion. Including IFRS 16 lease liabilities, net debt will decrease by SEK 1.1 billion.
The transaction will give rise to a capital gain of approximately SEK 400 million, which will be recognised as an item affecting comparability in the Group’s operating profit for the second quarter of 2023.
The effect on the Group’s operating profit excluding items affecting comparability is expected to be negligible. Delcore Fastigheter is a joint venture and will be reported in ICA Gruppen in accordance with the equity method starting on 1 April 2023.
ICA Real Estate has since previously included the company Ancore Fastigheter, which is jointly owned with the occupational pensions company Alecta, and Trecore Fastigheter, which is jointly owned with Bonnier Fastigheter.
AMF owns 12.7% of the shares in ICA Gruppen.
Bright Advokat, Mannheimer Swartling and Colliers have served as advisers to ICA Real Estate for the transaction.