15th May 2008 17:33
Press release
Telefónica O2 sold part of its real estate for more than CZK 4 billion
Date: 15. 5. 2008
Today, Telefónica O2 Czech Republic signed a master agreement with Bohemia Real Estate Investments s.r.o. for the sale of the part of its real estate portfolio. At the same time the master agreement includes a long term lease back agreement relating to some spaces.
Contract signature is a complement of the project which has been run in the company for several years with a support from professional advisors. In comparison with the original approach to sell all of its real estate, Telefónica O2 decided to sell only a specific portfolio. The portfolio consists of a mix of administrative and technological buildings located throughout the whole country which are redundant or with a low occupancy. The total area of the sold portfolio amounted to 632 thousand square meters, of which only a small portion will be leased back on the long term basis. Buildings with strategic interest for the company or with high occupancy will stay in Telefonica O2 ownership, while continuously analysing utilisation of those assets to ensure they are being beneficially employed.
"Telefónica O2 focuses on an efficient usage of its assets needed for the core business, which is telecommunications. Following this strategy and further improve efficiency of our business I am happy that we successfully completed this transaction," says Salvador Anglada, the CEO and the Chairman of the Board of Directors when commenting on the deal.
The purchase price of the portfolio exceeds CZK 4 bn. Telefónica O2 expects that after exclusion of the related costs comprising mainly net book value and other transaction costs, total gain from the sale will exceed CZK 0.4 bn and total cash contribution exceeding CZK 3 billion. The complex financial impact will be reflected mainly in the second quarter of 2008. From the second half of 2008 onward the financial results will be impacted also by rental costs paid for space leased back and lower depreciation charge.
In the transaction, Telefonica O2 has been supported by Erste Corporate Finance, a.s. in the area of investment banking and financial advisory, by KNIGHT FRANK, spol. s r.o. in the area of real estate advisory and by Baker & McKenzie, v.o.s. as legal counsel. All three companies rank among the top advisory companies in their areas in the Czech Republic.
About Bohemia Real Estate Investment
BOHEMIA REAL ESTATE INVESTMENTS s.r.o. is a company focused on mid to long-term real estate investments on sale and leaseback basis. BOHEMIA REAL ESTATE INVESTMENTS s.r.o. closely co-operates with international investors interested in the Central European real estate transactions. BOHEMIA REAL ESTATE INVESTMENTS s.r.o. is a part of the RENTERA GROUP, which is represented on the local market through several companies (e.g. RENTERA a.s., BOHEMIA REAL ESTATE s.r.o., R & R Investment Group a.s., Hotel u Města Vídně a.s.). BOHEMIA REAL ESTATE INVESTMENTS s.r.o. and affiliated companies have currently over 100,000 sq. meters of office space, apartments and hotels under ownership and management. The Group of companies controls a real estate portfolio spread across the whole Czech Republic. In the last years BOHEMIA REAL ESTATE INVESTMENTS s.r.o. and the Group of affiliated companies has expanded dramatically and became a respected regional market player. Special attention is paid to the regional exposure, respectful tenants with leaseback exceeding average of 5 years. The core tenants are primarily financial institutions such as banks and insurance companies. The company is based in Prague. BOHEMIA REAL ESTATE INVESTMENTS s.r.o. is currently in the process of increasing the paid up capital above CZK 200 million.
For more information, please contact:MARTIN ŽABKA Spokesperson tel: + 420 271 463 359 e-mail: [email protected]
http://www.cz.o2.com/
About Telefónica O2 Czech Republic
Telefónica O2 Czech Republic, a.s., is the first integrated operator in the Czech Republic, formed on 1 July 2006 by the merger of the leading fixed line operator, ČESKÝ TELECOM, a.s., and the strongest mobile operator, Eurotel Praha, spol. s r.o., into a single telecommunications organization. The organization is now operating more than seven million lines, both fixed and mobile, making it one of the world's leading providers of fully converged services.
Telefónica O2 Czech Republic offers the most comprehensive portfolio of voice and data services in this country. Special attention is paid to the exploitation of growth potential, particularly in the data and Internet sector. Telefónica O2 Czech Republic operates the largest fixed and mobile network, including a 3rd generation network, CDMA (for data), and UMTS, enabling voice, data, and video transmission. Telefónica O2 Czech Republic also runs the largest network of WiFi hotspots in the country.
About Telefónica O2 Europe
Telefónica O2 Europe comprises mobile network operators in the UK, Ireland, and Slovakia, along with integrated fixed/mobile enterprises in Germany and the Czech Republic - all of which use 'O2' as their consumer brand. Telefónica O2 Europe also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany, respectively, and has 100% ownership of Be, the UK's leading fixed broadband provider. Additionally, the group includes the Isle of Man fixed/mobile operator, Manx Telecom.
Telefónica O2 Europe, part of the Telefónica group, is headquartered in Slough, UK, and has more than 40 million mobile and fixed customers.
About TelefónicaTelefónica is one of the world's largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 24 countries and its customer base exceeds 228 million globally. Telefónica's growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America.
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