Pan-European sale of freeholds to raise £250m
Jane Roberts
Ericsson is planning a European sale-and-leaseback programme to raise cash from property.
The Swedish company, the world’s third-largest mobile phone maker, has just revealed a 63% plunge in earnings.
It is looking to sell the freeholds of 185,800m2 (2m sq ft) of office and production buildings in eight countries to squeeze out around £250m.
Catella, the Swedish-owned European property consultant, has been hired to co-ordinate the exercise, which will involve at least five other agents.
In the UK, Ericsson owns the freeholds of four buildings: its UK headquarters at 1 St James’s Square, SW1; a 14,300m2 (153,929 sq ft) office in Burgess Hill; and two mobile phone production plants in Worksop and Scunthorpe.
Catella’s UK office, headed by David Skinner, has been appointed to advise on the three buildings outside London. But Skinner said it was not clear whether all three would be included in the sale-and-leaseback programme.
Ericsson said last week that it was to outsource its loss-making mobile phone production, which accounts for about 30% of its revenues worldwide.
Healey & Baker was appointed to sell St James’s Square last autumn.
Skinner said: “Ericsson wouldn’t rule out one buyer, but some buildings aren’t prime and others are large, and they may go separately.”
Skinner has taken over from Gordon Wood as MD of Catella UK. Wood continues to head agency business.
