Source: Marimekko Oyj
Marimekko Corporation, Stock Exchange Release, 11 April 2018 at 10.00 a.m.
MARIMEKKO AGREED ON A SALE AND LEASEBACK OF ITS HEAD OFFICE BUILDING IN HELSINKI TO FOCUS ITS EFFORTS ON CORE BUSINESS DEVELOPMENT
Marimekko Corporation has sold its head office building in Herttoniemi, Helsinki to the Finnish Real Estate Fund Finland III Ky, a fund of OP Financial Group. The building with total lettable area of approximately 11,000 square metres houses Marimekko’s head office, textile printing factory, and retail space of two stores. Marimekko has signed a long-term lease agreement and will remain a tenant in the building, which will continue to serve as important location for Marimekko combining its head office operations and design capabilities with fabric printing.
“We are pleased with the sale and leaseback of our head office building as we saw this transaction as an opportunity to improve our financial flexibility and fully focus on our future growth. Owning real estate is not part of our core business. However, the building plays an integral role in housing a big part of our creative community and business functions and serving as a destination for domestic and international customers and visitors. We were delighted to find a new owner who is committed to improving the working environment of the building and making it more energy efficient in line with our sustainability approach. We have signed a long-term lease agreement and we continue to operate in the same premises,” comments Tiina Alahuhta-Kasko, President and CEO of Marimekko.
The cash and debt free selling price is EUR 10.4 million. As a result of the transaction, Marimekko will book a non-recurring taxable capital gain of about EUR 6 million in the second quarter of 2018, and the estimated cash flow impact before taxes will be about EUR 9 million. In addition, OP has committed to invest in renovating the building, which will improve the working environment for Marimekko employees and continue to ensure shopping experience for over 100,000 customers annually visiting the location’s retail stores and restaurant. As a result of the transaction, Marimekko’s expenses are estimated to increase by about EUR 1 million and depreciation to decrease by about EUR 0.5 million annually.
Tiina Alahuhta-Kasko, President and CEO, tel. +358 9 758 71
Elina Aalto, CFO, tel. +358 9 758 7261
Tel. +358 9 758 7293
Nasdaq Helsinki Ltd
Marimekko is a Finnish design company renowned for its original prints and colours. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2017, brand sales of the products worldwide amounted to EUR 193 million and the company's net sales were EUR 102 million. Roughly 160 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com