On 31 July in line with the plans to exit operating real estate and focus on the core business AS Baltika subsidiary OÜ Baltika TP has signed sales agreement with AS Kawe Group to divest Veerenni 24 (office buildings and land). Baltika Group will continue to rent the space for its head office and Moetänav store space at the site.
The transaction amounts to 13.6 million euros from which 13 million euros was settled at the time of signing the agreement and 0.6 million euros will be paid in equal instalments over the next 5 years.
AS Baltika used the funds to make early repayment of a loan from AS Swedbank and as a result loan liabilities decreased by 13 million euros. As a result of the transaction Baltika investment property and non-current assets held for sale in the amount of 13.6 million euros decreased in full. Short and long term receivables increased by a total of 0.6 million euros. The sale price is equal to the book value of the asset and as such the sale transaction has no significant impact for in the income statement.