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Volvo Selling Real Estate Companies

GOTEBORG, SWEDEN-The locally headquartered company's financial services unit agrees to sell two wholly owned real estate companies that own properties valued at $75 million (SEK$515 million) in the Swedish cities of Torslanda and Kalmar.

By Brian K. Miller | Updated on February 22, 2005

GOTEBORG, SWEDEN-Volvo Financial Services is selling two real estate companies that own a combined $75 million in real estate in the Swedish cities of Torslanda and Kalmar. Danafjord AB, the Volvo Group’s real estate company, entered into a purchase and sale agreement with AEVS Alfa AB, a subsidiary of Sveafastigheter. The Kalmar property, a former car assembly plant that has been converted into a tech park, includes 672,744 sf of buildings. The Torslanda property includes 560,000 sf of office and a 613,500-sf parking garage. Volvo Financial Services officials say the sold properties are not of strategic interest to Volvo and do not have Volvo Group companies as tenants. Information on the properties’ vacancies, if any, was not available Tuesday.The transaction price is being withheld until the closing of the transaction, which is scheduled for March. Volvo Financial Services says the sale will generate a capital gain of $27.6 million.The 78,000-employee Volvo Group is a manufacturer of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The group also provides financing and service. Annual sales of the Volvo Group amount to $23.8 billion.

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