Research Reports

ICA Real Estate and AMF Form Delcore Fastigheter to Acquire Commercial Properties

ICA Real Estate and the occupational pensions company AMF are partnering to create Delcore Fastigheter, a jointly-owned property company. Delcore Fastigheter will initially acquire 30 store properties from ICA Real Estate, with a combined property value of approximately SEK 5 billion. Both companies will own 50% of Delcore Fastigheter, which aims to acquire and own commercial properties with ICA stores as the main tenant.

CEO of ICA Real Estate, Anna Nyberg, said, “Through the formation of Delcore Fastigheter, we are creating conditions for ICA to maintain influence over its marketplaces while also freeing 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.”

The 30 store properties, measuring over 150,000 square meters, are expected to have a net effect of approximately SEK 3.8 billion on the Group’s cash flow in the second quarter of 2023, as well as decreasing the Group’s net debt by SEK 3.8 billion (excluding ICA Bank and IFRS 16 lease liabilities). Including IFRS 16 lease liabilities, net debt will decrease by SEK 1.1 billion. The transaction is also expected to result in a capital gain of approximately SEK 400 million, which will be recognized in the Group’s operating profit for the second quarter of 2023.

AMF will take ownership of Delcore Fastigheter on April 1, 2023, and the company will be reported in ICA Gruppen under the equity method starting on that date. ICA Real Estate has previously established jointly-owned companies Ancore Fastigheter with Alecta and Trecore Fastigheter with Bonnier Fastigheter. AMF currently owns 12.7% of the shares in ICA Gruppen.

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