Volvo Group to Sell Real Estate in Europe
The Volvo Group said it has agreed to sell some of its commercial real estate in Europe in a move that will generate additional income for its global truck business and other operations.
The transaction, valued at about 2 billion Swedish kronor, or about $308 million, is expected to close in the second quarter, the company announced March 28.
Volvo said it expects the sale to raise operating income by 200 million kronor in its trucks segment and by 700 million in corporate functions during the second quarter.
The transaction covers real estate in Gothenburg, Sweden, that is owned by the Volvo Group and leased to outside tenants, as well as properties in Denmark, Sweden and Finland that will largely be rented by companies within Volvo Group.
