Uponor exits from the real estate business

11/30/2004, 1:35 PM (Source: GlobeNewswire)
Uponor Corporation Stock exchange release 30 Nov. 2004 14:30

Uponor Corporation today concluded an agreement for selling its real
estate subsidiary, Renor Ltd, to Grouse Holding Oy. The deal is in
line with Uponor's strategy to withdraw from the real estate
business. The debt-free sale price amounts to around EUR 90 million,
the majority of which was paid at the closing of the deal while the
remaining EUR 18 million will be paid during the next seven years.

In addition, Uponor sold its 228,865 shares in Sato-Yhtymä Oyj, a
real estate services company, accounting for 10.4 per cent of the
share capital, to Varma Mutual Pension Insurance Company for around
EUR 14.8 million.

These two deals will generate around EUR 84.4 million in cash flow
for the current financial year but will have no effect on
consolidated operating profit.

Renor Ltd owns all of Uponor's real property in Finland that does not
belong to the core business. With a staff of 30 upon the date of the
agreement, Renor has annual net sales of approximately EUR 18

Renor Ltd was founded in February 2000 when Uponor's real estate
business was incorporated, at that time under the name of Asko Real
Estate Ltd. Because the real estate business was not the Group's core
business, Uponor has since then aimed to dispose of it gradually and
focused resources on its housing and infrastructure solutions
business instead. In line with this strategy, Renor has divested its
real properties one by one.

Renor Ltd owns major real properties, for example in Vantaa, Tampere,
Lahti, Pori and Forssa in southern Finland, consisting of business
and industrial premises as well as properties under development. It
rents a floor space totalling 410,000m² while its unexercised
permitted building volume totals 300,000m² of floor space.

The acquirer, Grouse Holding Oy, is a property investment company
established for this purpose by Finnish real property professionals.
Its owners are, through their companies, Heikki Hyppönen, Niilo
Pellonmaa, Markku Hietala, Hannu Katajamäki, Kari Kolu, Jyrki Ojanen
and Jarmo Rytilahti as well as Pontus Oy, a company owned by Ilpo
Kokkila, Kari Filppula, Jorma Haapamäki and Eero Nuutinen.

The new owner aims to develop Renor on a long-term basis. Its
business idea is to focus on owning, renting and developing business
and industrial premises.

Uponor still has two commercial properties in Stockholm and Oslo, and
efforts to divest them continue.

Advium Partners Oy has acted as Uponor's advisor in Renor's sales

For further information, please contact:

Uponor Corporation
Jan Lång, President and CEO, tel. +358 20 129 2822
Jyri Luomakoski, CFO and Deputy CEO, tel. +358 40 515 4498

Grouse Holding Oy
Heikki Hyppönen, Chairman of the Board, tel. +358 9 684 5608

Uponor Corporation
Tarmo Anttila
Vice President, Communications

HEX Helsinki Exchanges
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.