Nordea to sell Nordea Ejendomme
Nordea has entered into an agreement with the property management company DEAS A/S to sell the Danish property asset management company Nordea Ejendomme. The transaction is expected to be completed before year-end.
“After selling Nordea Liv & Pension in Denmark last year, we see it as a natural step for Nordea to divest our property management for us to focus on our core business,” said Snorre Storset, head of asset & wealth management, Nordea. “With DEAS we have found an owner who has the best prerequisites for further developing Nordea Ejendomme and servicing the company’s customers, and also for making the investments necessary to be an attractive business partner for the future.”
Nordea Ejendomme, on behalf of Nordea Liv & Pension and other institutional investors, manages a property portfolio of approximately €3 billion ($3.5 billion) and is Denmark’s largest provider of commercial leases with approximately 2,700 office, store and warehouse rentals and approximately 1,150 residential rentals.
The customers whose portfolios are currently managed by Nordea Ejendomme will be serviced by DEAS Asset Management A/S. With the acquisition, DEAS welcomes about 90 employees from Nordea Ejendomme.
Upon completion of the transaction, it is expected to result in a capital gain amounting to approximately €35 million ($41 million) for Nordea, expected to be recognized in the line item other operating income in the fourth quarter of 2018. Costs are reduced by approximately €8 million ($9.32 million) annually, revenues will decrease by approximately €16 million ($19 million) annually.
While the transaction agreement has been signed, the details of the transaction and its completion no later than the fourth quarter of 2018 remain subject to applicable regulatory approvals.
