Northern European Properties (NEPR), the AIM-listed property company floated by the Livingstone brothers last November, has sold a total of €363m (£260m) of Swedish properties to two buyers.
The company, which invests in property in Russia and the Nordic and Baltic region, sold one portfolio comprising 14 industrial and office properties to quoted Swedish property company Kungsleden. The principal tenants include transport and warehouse specialists ABB Fastightet and Frigoscandia. Catella advised NEP.
In a second separate deal it sold one property in Sweden to Swedish property company Dios & Kuylenstierna.
The gross rental income for the sold properties was around €29.4m (£21.1m).
The deal will complete in two weeks time and NEP said the proceeds will be used to partially fund the purchase of two office buildings, a hotel and a retail DIY store in St Petersburg, Russia.
NEPR said: ‘In the light of current debt market conditions, NEPR will initially inject significantly more equity into these acquisitions than previously anticipated, which it will strive to refinance when market conditions have improved.’
It said it would continue to consider sales within the Nordic portfolio where attractive values could be achieved and ‘which it expected would verify NEPR’s reported property valuations’.