Arundel wants to sell real estate in Leipzig
Real estate investment company Arundel is looking to sell its properties in Leipzig. The SIX-listed company said it was looking for a buyer for the real estate
Arundel intends to use the proceeds from the sale of the properties to, among other things, repay loans and redeem a CHF 25 million convertible bond that matures in March 2019.
The Leipzig properties are leased to government tenants and generated an after-tax profit of $3.3 million (CHF 3.2 million), according to the latest financial report. Fixed assets reportedly total $150.7 million (CHF144.5 million), with liabilities of $90.3 million (CHF86.6 million).
According to Arundel, the planned property sale in eastern Germany is also related to the acquisition of the German real estate companies Immac Holding and HKA Hanseatische Kapitalverwaltung, which was announced at the end of March. Dr. Volkert Klaucke, Arundel's chairman, called the portfolio sale a "logical step to prepare Arundel for the merger with Immac and HKA."
